Top U.s. Sugar Zaigong Not Be Frozen Food Industry

By the market turmoil should be tight and demand strong rebound effect, white sugar futures price on the 13th a new high.



Suffering Sugar United States rose more than afflicted Food Manufacturers written a letter to the Ministry of Agriculture, threatened to Prices And layoffs, to urge the Government to relax import restrictions. brass door hinge

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London Financial Futures Exchange (Liffe) in October sugar futures, after trading up 3.5% to 589.9 U.S. dollars per tonne, for the start of trading in 1983, the highest since the futures contract price. October raw sugar futures in the New York Intercontinental Exchange (ICE) also rose 1.4% to 23.29 cents a pound, approaching 28 and a half years since the highest price.



Sugar prices hit record highs, mainly due to economic upturn is expected to push up the market demand, and the two major sugar-producing countries, India and Brazil, bad weather, the situation could lead to increased tension.



Norton History of Barclays Capital analyst, said: "These data continue to support the fundamentals of sugar, the next six to nine months should be even more tight market turmoil."



By the Kraft Foods (KraftFoods), General Mills (GeneralMills), Mars (Mars) and Chocolate Business Hershey Company (Hershey) and other food industry alliance composed of sugar policy (SPA), in a letter earlier this month, Agriculture Minister Wei Sake (TomVilsack) respect the letter, because sugar prices rising rapidly, if the Government does not relax the import restrictions U.S. Sugar would be "exhausted."



Food industry want from Brazil and Mexico duty-free import of sugar, and threatened that if the Ministry of Agriculture does not agree, will be used to resist higher prices and layoffs. They said that if the package can not get cheap imports of sugar, "the consumer must pay, the food industry will be at risk, trading patterns will be distorted."



The United States currently only allows duty-free imports of Mexican sugar, while other areas are subject to import quota control.



Sugar Users Association (SUA), economists said, the food industry by the end of September before they want to increase the duty-free imports of 450,000 tons of sugar.



This letter highlights the U.S. sugar industry, food companies and the long dispute over the federal policy. Authorities to ensure that the growing sugar beet and sugar cane farmers income without fear, deliberately lift the domestic price of sugar, leading to the U.S. sugar prices higher than international market price is about twice the average.



Signatories of this petition Gonnella Frozen Food Company, said Lu Qiexi head of procurement, the United States sugar policy distorts the current pricing, although sugar products account for only Gongben 0.5%, but rises in sugar prices has forced the company to hamburgers and hot dogs and other food prices.



U.S. Department of Agriculture announced Aug. 12, the global agricultural market report, in September 2010, America's sugar supply forecast will be dropped 43%, while the food industry by the end of September only the harvest year, from Mexico imported 1.4 million tons of candy.