World prices for raw sugar (f.o.b.
Caribbean Contract No. 11) averaged 6.55 cents per pound
during the first nine 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 in March and
April of 1999, as many large producers had increased
production, while many large importers were still facing
financial difficulties. Additionally, many exporters were
using the export market to satisfy immediate financial
obligations or to avoid keeping large stocks, which
helped to keep the market depressed. Beginning in
September, the market leveled out after a small recovery.
As the market was able to evaluate the continuing global
surplus of sugar, the price held steady at 6.75 to 7.15
per pound. The average prices for 1995, 1996, and 1997
were 13.44, 12.24, and 12.06 cents per pound,
respectively.
World refined sugar (C.I.F., London,
Contract No. 5) prices averaged 9.55 cents per pound in
the first nine 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, but recovered slightly in mid-1999.
U.S. raw sugar prices (nearby futures,
C.I.F., duty-fee paid, New York, Contract No. 14)
averaged 21.86 cents per pound through the first ten
months of 1999. However, as signs of a larger U.S.
domestic 1999/2000 cane and beet crop began to emerge,
prices started to decline to significantly below 20.00
cents per pound.
In the United States, wholesale refined
sugar prices have held steady at an average of 26.93
cents per pound for the first ten months of 1999. Refined
sugar prices averaged 26.12 cents per pound in 1998,
compared to 27.09 cents per pound in 1997.
