Traders have developed a sweet tooth for sugar as the commodity continues to rise on the markets.
The price of sugar has been on the increase for weeks, climbing nearly 50 per cent since early May, and analysts predict the upward trend to continue.
Many experts believe the increase in sugar prices has been driven by speculators rather than fundamental agricultural factors or growing demand among consumers to put more sugar lumps in their tea. But crop harvests in Brazil are mooted to be smaller than first expected, which is likely to affect global supply because the country accounts for about a quarter of world production and a large percentage of global exports.
"The severe logistical difficulties in Brazil and Thailand are slowing sugar shipments in the main ports and support spot prices as a result," Schroders said in a recent note to its clients.
The industry group Unica lowered its harvest estimate to 533.5 million tonnes of cane on July 13, down from a previous projection of 568.5 million tonnes.
Meanwhile, the brokerage ICAP do Brasil CTVM says the country continues to overestimate the amount of sugar cane it will harvest, with the company forecasting the cane crop to be just 520 million tonnes. "Looking at the behaviour in the price, the fundamentals are bullish because they have to support the price movement we have seen recently," said Bruce Powers, the head of research and analysis at Trust Securities, based in Dubai.
The price has risen from 20.8 US cents per pound on May 6 to 30.7 cents per pound yesterday.
Mr Powers predicts the price could rise more than 7 per cent to 32.7 cents per pound before seeing a small correction downwards. This will only be short-lived, though, as issues affecting supply move down the chain.
"It is likely that we will have a pull back before it breaks through. The rally has been strong but it will eventually run out of momentum in the short term," Mr Powers said. "In the long term it's bullish."
rjones@thenational.ae
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Mohammed bin Zayed Majlis
How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
The specs
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
MATCH INFO
Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)
TV: BeIN Sports
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
COMPANY%20PROFILE
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The specs
Engine: 3.0-litre six-cylinder turbo
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Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months