Goldman Lifts Sugar Price Hopes

Sugar producers should sell into the strong market, Goldman Sachs has said, even as it raised its forecasts for prices of the sweetener for the next 12 months, reports Agrimoney.com.

The advice came shortly before prices tanked 7% in New York to their lowest point of the year, before recovering some ground in late deals.

The investment bank said that prices would prove “high and volatile” for much of 2010 as India, the world’s biggest sugar consumer, reveals its strategy for securing supplies in a market tightened by disappointing crops both at home and in Brazil, the biggest producer.

Even the next crop from Brazil’s Centre South region, the source of 90% of its production, “would not be able to alleviate the current tight inventories.”

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