Raw sugar prices could fall below eight cents per lb. in the coming months because of global oversupply, Forties said in its latest monthly agree-commodities report on Thursday.
The New York Board of Trade's benchmark October sugar contract dropped 0.06 cent to settle the open-outcry session on Wednesday at 9.65 cents per lb.
"Raw sugar prices could easily slip to 8 cents/lb. later this year, if as seems entirely possible the International Sugar Organisation yet again revises its projections for the 2006-07 and 2007-08 surpluses," Forties said.
"Sergey Gudoshnikov, senior economist with the ISO, averred on June 13 that 8 cents/lb. 'is a possible scenario in the coming few months'. Which might prove to be something of an understatement."
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