Global prices for sugar down as people become more health conscious
There is now a massive sugar glut globally. The reason? consumers all over the world are becoming more conscious about their health.
A Bloomberg report showed that now considered as the worst-performing commodity of 2018, sugar sees its stockpiles growing at a record level while demand is on the downtrend.
“Consumers have become increasingly wary of the health impact of their sweet tooth, and companies from canned-fruit maker Del Monte Foods Inc. to snack-food seller Mondelez International Inc. are touting products made with less sugar,” the report said.
Researcher Green Pool Commodity Specialists said that even if there is a rise in the global consumption, its pace has slowed to an average 1.4 percent in recent months.
This, while the production is at its peak. India and Thailand, the world’s top sugar producers, are particularly seeing massive crops.
As a result, “sugar futures in New York have already slumped 25 percent in 2018. That’s the biggest loss on the Bloomberg Commodity Index, which tracks returns for 22 components,” the report further said.