World prices for raw sugar (f.o.b.
Caribbean Contract No. 11) averaged 6.75 cents per pound
during the first four months of 1999 and 9.69 cents per
pound in calendar year 1998. The price for Contract No.
11 raw sugar has declined steadily for the past four
years with an exceptionally sharp decline beginning in
the early spring of 1999, as many large producers are
expected to have increased production, while many large
importers are still facing financial difficulties.
Additionally, many exporters are using the export market
to satisfy immediate financial obligations or to avoid
keeping large stocks. The average price for 1995, 1996,
and 1997 are 13.44, 12.24, and 12.06 cents per pound,
respectively. There was an increase in late 1997 due in
part to prices hitting an upward movement in the 2-year
sugar price cycle. However, the decline to under 10.00
cents per pound reflects significant changes in the
market that have occurred during the latter part of 1998.
World refined sugar (C.I.F., London,
Contract No. 5) prices averaged 10.75 cents per pound in
the first two months of 1999. The average price in 1998
was 11.59 cents per pound. Refined sugar prices have
mirrored the decline in the raw sugar prices, falling
since August of 1997.
U.S. raw sugar prices (nearby futures,
C.I.F., duty-fee paid, New York, Contract No. 14)
averaged 22.48 through the first four months of 1999.
Prices were relatively steady throughout 1998, averaging
22.06 cents per pound, slightly exceeding the 21.96 cents
per pound average price in 1997.
In the United States, wholesale refined
sugar prices have held steady at an average of 27.08
cents per pound for the first several months of 1999.
Refined sugar prices averaged 26.12 cents per pound in
1998, compared to 27.09 cents per pound in 1997.
