Milling & Baking News - September 8, 2009 - 13

Business 

Sugar prices continue to rise
and took another smaller bounce in
early September as Hurricane Gustav
threatened Gulf cane refineries and
damaged cane fields in the region.
Concern about damage to Gulf cane
refineries was heightened by memories of Katrina and by the fact that the
Imperial Sugar Co. refinery in Port
Wentworth, Ga., still was far from operational. But Mexico was in the initial stages of shipping large quantities
to the United States duty free under
the North American Free Trade
Sugar prices
Agreement. About
50
cents per lb
the same time, the
U.S. Department
Refined cane
of Agriculture in40
creased
import
quotas,
further
adding to supply
30
Sugar #16 (domestic)
until the 2008 U.S.
beet crop became
available.
20
But the reason
Sugar #11 (world)
for this year's
pricing is far dif10
May
June
July
Aug.
Sept.
ferent,
longer
2009
term and global in
nature. The Impeof 48c for spot delivery and 44c for rial facility in Port Wentworth is up
other periods. Prices had been in- and running, albeit still at a reduced
creased to 39c a lb by most proces- capacity, and domestic sugar supplies
sors only a couple of weeks earlier, are tight but still available at offering
and values have risen 9c, or 27%, levels. But supplies in Mexico have
since dipping to 33c in early May. In run low and that country is seeking,
contrast, when Katrina hit in August mostly unsuccessfully, to import sug2005, bulk prices shot from 26c a lb in ar from the world market. Shipments
mid-August to 44c in mid-September, from Mexico to the United States are
forecast to drop dramatically in 2009a gain of 69%.
Interestingly, current bulk refined 10 (October-September) as a result.
And the U.S.D.A. has made no
sugar prices were near year-ago values. Last year prices rose in mid-Au- change to import quotas for the
gust due to tight domestic supplies, current year, at least in part because
KANSAS CITY - With supplies tight
globally, refined sugar prices took
another bounce last week with major
beet and cane processors raising offer prices 3c a lb, to the highest level
since Hurricane Katrina shut down
Gulf cane refineries in 2005.
Bulk refined beet and cane sugar
last week was offered nationally by
most processors at 42c a lb, f.o.b., for
spot through Dec. 31, 2010, delivery,
although one company posted offers

Heinz sponsors W.F.P. project in Bangladesh
PITTSBURGH - The H.J. Heinz
Company Foundation will provide
a first-year grant of $350,000 and inkind technical assistance to a nutrition
mapping project conducted in Bangladesh by the World Food Program.
"In Bangladesh, Heinz is helping
W.F.P. identify the most vulnerable populations and formulate strategies to improve their access to food and their nutritional intake," said Tammy Aupperle,
director of the foundation. "The goal is
to create a model for helping to build a
healthier, more productive and self-reliant society from the ground up."
The foundation seeks to reduce
14 / September 8, 2009 Milling & Baking News

global malnutrition through its Heinz
Micronutrient Campaign, which has
reached about 3 million children with
single-serve micronutrient sachets
that contain a mix of vitamins and
minerals. A regimen of 60 sachets administered over two months may meet
the micronutrient needs of a child for a
year for about $1.50.
In Bangladesh, nearly 40% of young
children and women are underweight,
and almost half the children under
age 5 suffer from stunted growth.
The W.F.P. wanted to feed 5 million
hungry people in Bangladesh this
year, but now it can reach only 1.4

there is no supply available to import
at short notice.
Global sugar supplies are tight because India, the world's largest sugar
user and second largest producer, is
experiencing a dramatic shortfall in
production that is expected to carry
into next year. Usually a net exporter,
India is actively importing supply
this year. Production in India was
estimated to be around 15 million
tonnes in the current marketing year,
down more than 40% from a year earlier. Demand averages near 23 million
tonnes annually.
At the same time, production in
Pakistan is down from record outturn
in 2007-08 and production in Brazil,
the world's largest producer, was delayed by problematic weather.
World raw sugar (No. 11) futures
shot to new 28½-year highs in New
York early last week, pulling domestic raw sugar (No. 16) futures along in
their wake. The domestic price is tracking the world price because U.S. cane
refiners must garner some of their supply from the world market since not
enough cane if produced domestically.
The International Sugar Organization (I.S.O.) last week forecast global
sugar production will fall 10.4 million tonnes short of consumption in
2008-09 and 8.4 million tonnes short
in 2009-10 as India's outturn recovers
somewhat.
Also last week, Fortis Bank said
world white sugar prices have risen
about 75% and world raw prices about
90% since the beginning of the year.
Domestically, harvest of the 2009
beet crop is in its early stages. New
crop sugar should become available
later in September, improving the domestic situation but will little impact
globally. MBN
million because of funding shortfalls.
The W.F.P. in Bangladesh distributes wheat flour, biscuits and blended food, all fortified with essential
micronutrients. It also distributes
micronutrient powders that may be
added to food.
"The World Food Program is
thrilled to be partnering with the
H.J. Heinz Company Foundation on
a unique project to comprehensively
map the nutritional status and needs
of Bangladesh, and then develop with
other key stakeholders a sustainable
strategy for eradicating hunger and
micronutrient malnutrition in this nation," said John Aylieff, W.F.P. representative for Bangladesh. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - September 8, 2009

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