News / Economy

US Sugar Refineries Hike Prices as Supplies Tighten

FILE: Imperial Sugar, one of three U.S. sugar refiners to raise prices this week, has a plant in Houston, Texas.
FILE: Imperial Sugar, one of three U.S. sugar refiners to raise prices this week, has a plant in Houston, Texas.
Reuters
Three U.S. sugar refiners, including Domino Sugar and Imperial Sugar, have this week raised refined sugar prices by up to a third, as supplies tighten and U.S. regulators consider imposing duties on Mexican imports.
 
United Sugars Corp and American Sugar Refining Group's (ASR) Domino Foods Inc. issued new price lists to customers in letters Tuesday, increasing industrial prices to $37 per hundredweight (cwt), or 37 cents per pound through Sept. 30, 2015.
 
On the same day, Louis Dreyfus Commodities raised its list price for Imperial Sugar to $38 per cwt, but no time frame was given. All were effective immediately, according to letters to customers seen by Reuters.
 
The new prices represented an increase of 12 to 32 percent since October, the last time these refiners changed prices. The three companies accounted for more than half of the 11 million tons of U.S. refined sugar.
 
Domino’s president and chief executive officer, Brian O'Malley, said in an email to Reuters the move was “in response to higher raw sugar costs.”
 
Imperial declined to comment. United did not return calls or emails seeking comment.
 
On Tuesday, the domestic raw sugar futures price hit 25.55 cents per pound, the highest since October 2012.
 
Concerns about falling imports  
 
The size of the hike surprised some traders because domestic raw prices have risen 20 percent since October.
 
The rally has accelerated since early April after ASR and other U.S. sugar producers accused Mexican mills of dumping subsidized sugar in the industry's first trade case in decades, raising concerns about falling imports from the major U.S. trade partner.
The U.S. Department of Commerce is scheduled to make a preliminary decision on potential countervailing duties during the summer. A ruling on anti-dumping duties is due in September.
 
The threat of duties is expected to slow imports, traders say.
 
“A large portion of the sugar for 2015 has already been contracted, so it's that much more supportive for these guys to try to get higher prices for the remainder of their book,'' said Kevin Combs, vice president for McKeany Flavell, a commodity brokerage in Oakland, California.
 
Domino's O'Malley would not comment on how many customers have agreed on contracts for 2015, but said some industrial customers already have at least partially covered their needs for next year.
 
In October, Domino and Imperial raised list prices to $33 per cwt, and United to $28 per cwt.
 
Global prices declining
 
The combination of falling Mexican imports and a smaller U.S. sugar beet crop have transformed U.S. prices even as the global market struggles with its fourth straight year of oversupply. Global raw prices have fallen about 7 percent at around 17.20 cents per pound since October.
 
Last year, the U.S. government scooped up hundreds of millions of dollars worth of unwanted sugar from processors.

You May Like

Video Drug Use Rises in Afghanistan

Ninety percent of world’s heroin comes from Afghanistan More

Here's Your Chance to Live in a Deserted Shopping Mall

About one-third of the 1200 enclosed malls in the US are dead or dying. Here's what's being done with them. More

Video NASA: Big Antarctica Ice Shelf Is Disintegrating

US space agency’s new study indicates Larsen B shelf could break up in just a few years More

This forum has been closed.
Comment Sorting
Comments
     
by: Randy from: USA
May 30, 2014 7:11 AM
So, according to this article, world sugar prices are declining because of massive oversupply, but the US producers have in concert decided to RAISE prices?!? Whatever ever happened to economics and capitalism? Has it been replaced here by an open oligarchy? Whatever happened to the Sherman Antitrust Act?.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs

World Currencies

EUR
USD
0.8982
JPY
USD
121.07
GBP
USD
0.6376
CAD
USD
1.2215
INR
USD
63.612

Rates may not be current.