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Abstract
Rising pressure on sugar prices was intensified by supply disruptions in
2009, driving prices to double the long-term average. Higher production costs and growing ethanol use in Brazil set the stage for
higher prices, but policy-induced production swings among Asian countries are the main source of price volatility in world markets. Although dramatic fluctuations in world prices have affected U.S. sugar prices, domestic sugar policy continues to drive U.S. sugar price movements.