This report evaluates the U.S. and world sugar markets for 1998-2008 by using the World Sugar Policy Simulation Model. This analysis is based on assumptions about general economic conditions, agricultural policies, population growth, weather conditions, and technological changes. Both the U.S. and world sugar economies are predicted to be strong for the next ten years. World demand for sugar is expected to grow faster than world supply, gradually increasing sugar prices. World trade volumes of sugar are expected to expand.