Sugar prices soared to a 30-year high on supply concerns

Sugar Prices Sweeten to Record High Following Queensland Cyc
"Sugar prices soared to a 30-year high on supply concerns following the massive cyclone that hit northern Queensland at midnight on Wednesday. Front month March futures on New York's ICE exchange climbed to a high of $34.79 a pound, figures not seen since the early 1980s. In London, March white sugar was close to a recent record of $834.70 per ton. One London trader said, ""Thirty-five cents is an important price as there's a lot of open interest in the options market--about 25,000 lots of call options. There are even technical projections of a move toward 37.32 centslb if we can hold these gains."" Raw sugar futures in New York may continue to rise on concerns about already-strained supplies due to three consecutive seasons of deficit exacerbated by recent flooding in the Queensland region and now further drained by Cyclone Yasi damages. Australia is the third-largest sugar exporter after Brazil and Thailand with 7% of global exports. The region threatened by the cyclone produces about one third of Australia's sugar."