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

Lebanese Media Unite to Support Palestinians in Gaza

Joint newscast billed as Arab world’s first unified news bulletin in support of Hamas-controlled Gaza Strip More

Photogallery Australian PM Alleges ‘Coverup’ at MH17 Crash Site

Meanwhile, Russia's ambassador to Malaysia denies plane's black boxes were opened before they were handed over to Malaysian officials More

Despite Advances in AIDS Treatment, Stigma Lingers

Leading immunologist tells VOA that stigma is often what prevents those infected with disease from seeking treatment 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.
IAEA: Iran Turns its Enriched Uranium Into Less Harmful Formi
X
July 22, 2014 10:26 AM
Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Chicago’s Argonne Lab Developing Battery of the Future

In 2012, the U.S. Department of Energy’s Office of Science awarded a $120 million grant to a new technology center focused on battery development - headquartered at Argonne National Laboratory in suburban Chicago, Illinois. As VOA’s Kane Farabaugh reports, there scientists are making the next technological breakthroughs in energy storage.
Video

Video In NW Pakistan, Army Offensive Causes Massive Number of Displaced

Pakistan’s army offensive in North Waziristan has resulted in the large-scale displacement of the local population. VOA's Ayaz Gul reports from northwest Pakistan where authorities say around 80 percent of the estimated 1 million internally displaced persons [IDPs] have settled in Bannu district, while much of the remaining 20 percent are scattered in nearby cities.
Video

Video Kurdish Peshmerga Force Secures Kirkuk, Its Oil

The Kurdistan regional government has sent its Peshmerga troops into the adjacent province of Kirkuk to drive out insurgents, and to secure the area's rich oil fields. By doing this, the regional government has added a fourth province to the three it officially controls. The oil also provides revenue that could make an independent Kurdistan economically strong. VOA’s Jeffrey Young went out with the Peshmerga and filed this report.
Video

Video Malaysia Reeling: Second Air Disaster in Four Months

Malaysia is reeling from the second air disaster in four months involving the country’s flag carrier. Flight 340 vanished in March and despite an extensive search, no debris has been found. And on Thursday, Flight 17, likely hit by a surface-to-air missile, came apart over eastern Ukraine. The two incidents together have left more than 500 people dead. VOA Correspondent Steve Herman reports from Kuala Lumpur.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.