Glucose costs at 30-year high as products diminish

In yet another record gain, glucose costs hit a 30-year high on Tues and went up even more Wed. Last year, sugar product prices doubled. This year, they have continued to rise. The glucose industry and increasing prices mean more than more expensive glucose, though. Individuals aren’t expecting to need a pay day loan just to purchase their glucose.

30-year high on sugar prices

On Tues, glucose got up to 30.64 cents per pound which is a 30 year high. Then Wednesday, the glucose prices 30-year high jumped again to 34.77 cents per pound. Sugar that will be delivered and refined in March could be what these costs apply to. In Brazil, the crops ended up being smaller than expected. This meant that prices went up along with expectations of shortages and unpredictable weather.

Glucose prices changing just as much as commodity

Glucose, cotton, coffee and cocoa are all commodities that have been transforming a lot. This has been the case for a few years now. In the last year, glucose has been as low as 14.35 cents per pound and as high as 30.64 cents per pound. Cotton futures have set 130-year highs, and coffee recently set a 13-year price high. There has been a lot of extreme weather in other countries. This is what has brought on lots of the volatility being seen. The volatility also has to do with governments in countries like India. This volatility affects everybody from the growers who sell their crops to the final consumer price paid, two to nine months later, when the commodity finally reaches the industry.

Higher glucose need

There has been more of a “real” glucose demand recently. This is part of why the glucose costs 30 year high are happening. There has been an 11 percent drop for high fructose corn syrup this year which is an alternative to glucose as outlined by the United States department of agriculture. There’s a high of 10.72 cents for corn right now, although it’s three times less expensive than sugar, as it is the basis of high fructose corn syrup. HFCS is being changed by sugar by several United States corporations. However, food manufacturing operations in Mexico and other sugar-producing nations are opting to use the less-expensive corn option. There will continue to be volatile prices in glucose and other agricultural merchandise due to tariffs, weather and government factors.

Articles cited

Index Mundi

indexmundi.com/commodities/?commodity=corn

Sydney Morning Herald

smh.com.au/business/sugar-price-sweet-as-weather-slashes-global-supplies-20101230-19b2p.html

Bloomberg

bloomberg.com/news/2010-12-29/sugar-rises-to-highest-price-in-21-years-in-london-after-australian-floods.html

Financial Times

ft.com/cms/s/0/43cfbb7a-e6b2-11df-99b3-00144feab49a.html#axzz19cgXLVk0