Tuesday, July 17, 2007

Sugar Futures Increase as Higher Crude Oil Price May Boost Ethanol Demand

(Bloomberg) -- Sugar rose in New York on speculation
that higher energy prices may spur demand for ethanol, an
alternative fuel made from cane in Brazil.

Crude oil reached an 11-month high earlier today and has
increased 22 percent this year. Mills in Brazil's center-south
region, the source of 85 percent of the country's sugar cane,
produced more ethanol and less of the sweetener this season as of
July 1 compared with the previous year, the Center South Sugar
and Ethanol Industry Association, known as Unica, said last week.


Read more at Bloomberg Commodities News

No comments: