OPEC's Next Move Is Being Closely Watched By Sugar Traders
As energy minsters meet in Vienna this week to discuss oil-supply cuts, the sugar world will also be keeping a close eye on the outcome.
That’s because energy costs may be a key driver of sugar prices in the coming months as they determine the allure of ethanol, a biofuel made from sugar cane. Higher gasoline prices can encourage mills in top sugar producer Brazil to turn more cane into ethanol at the expense of the sweetener.
“The price of sugar will be very much linked to what happens in energy prices,” Plinio Nastari, president of consultant Datagro Ltd., said in an interview in London Wednesday.
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