Sugar soared to a 30-year high today

On Tuesday, raw sugar futures topped 30.6 cents a pound, rising to their highest point since 1980, when prices jumped to nearly 45 cents.  To get a sense of the dramatic increase in world sugar price, I have included a link to a more recent (post-2002) trend line. A sharper than expected drop in Brazil's estimated production is largely responsible for this spike. India's decision to withhold their domestically produced sugar from the international market is another other factor supporting the world price of sugar.  Here in Louisiana, the harvest season is well underway, and harvest conditions have been good to this point.  Tonnage is down but sugar content in the stalk has been well above average, so the growers are getting an average amount of sugar to the mills even though they are harvesting less cane.  Profitability is better than it has been for a long time.  I'm very happy for the growers and millers alike.