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

Brutality Eroding IS Financial Support

Director of National Intelligence James Clapper says IS's penchant for publicizing beheadings, other brutal forms of punishment hurts group’s bottom line More

Studies: Climate Change a Factor in Disasters in Syria, California

Studies point to possibility of clear and present dangers from a threat often considered to be far in the future More

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials and human rights organizations assert that Pakistani authorities are using deadly attack at school in Peshawar as pretext to push out Afghan refugees 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.
Kerry Seeks Assurances of Russian Non-Interference in Ukrainei
X
March 03, 2015 3:11 AM
U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Kerry Seeks Assurances of Russian Non-Interference in Ukraine

U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.
Video

Video Ukrainian Volunteers Prepare to Defend Mariupol

Despite the ongoing ceasefire in Ukraine, soldiers in the city of Mariupol fear that pro-Russian separatists may be getting ready to attack. The separatists must take or encircle the city if they wish to gain land access to Crimea, which was annexed by Russia early last year. But Ukrainian forces, many of them volunteers, say they are determined to defend it. Patrick Wells reports from Mariupol.
Video

Video Moscow Restaurants Suffer in Bad Economy, Look for Opportunity

As low oil prices and Western sanctions force Russia's economy into recession, thousands of Moscow restaurants are expected to close their doors. Restaurant owners face rents tied to foreign currency, while rising food prices mean Russians are spending less when they dine out. One entrepreneur in Moscow has started a dinner kit delivery service for those who want to cook at home to save money but not skimp on quality. VOA's Daniel Schearf reports.
Video

Video US, Cuba Report Progress in Latest Talks to Restore Ties

The United States and Cuba say they have made progress in the second round of talks on restoring diplomatic relations more than 50 years after breaking off ties. Delegations from both sides met in Washington on Friday to work on opening embassies in Havana and Washington and iron out key obstacles to historic change. VOA’s Mary Alice Salinas reports from the State Department.
Video

Video Presidential Hopefuls Battle for Conservative Hearts and Minds

One after another, presumptive Republican presidential contenders auditioned for conservative support this week at the Conservative Political Action Conference held outside Washington. The rhetoric was tough as a large field of potential candidates tried to woo conservative support with red-meat attacks on President Barack Obama and Democrats in Congress. VOA Political Columnist Jim Malone takes a look.
Video

Video NYC's Restaurant Week: An Economic Boom in Fine Dining

New Yorkers take pride in setting world trends — in fashion, the arts and fine dining. The city’s famous biannual Restaurant Week plays a significant role in a booming tourism industry that sustains 359,000 jobs and generates $61 billion in yearly revenue. VOA's Ramon Taylor reports.
Video

Video Brookhaven at Cutting Edge of US Energy Research

Issues like the Keystone XL pipeline, fracking and instability in the Middle East are driving debate in the U.S. about making America energy independent. Recently, the American Energy Innovation Council urged Congress and the White House to make expanded energy research a priority. One beneficiary of increased energy spending would be the Brookhaven National Lab, where clean, renewable, efficient energy is the goal. VOA's Bernard Shusman reports.
Video

Video Southern US Cities Preserve Civil Rights Heritage to Boost Tourism

There has been a surge of interest in the American civil rights movement of the 1950s and '60s, thanks in part to the Hollywood motion picture "Selma." Five decades later, communities in the South are embracing the dark chapters of their past with hopes of luring tourism dollars. VOA's Chris Simkins reports.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8907
JPY
USD
119.77
GBP
USD
0.6496
CAD
USD
1.2492
INR
USD
61.941

Rates may not be current.