Raw sugar at to 28-yr and refined sugar at all-time high, What it means for sugar companies ?

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There is a reason sugar is hitting high. India is highest consumer of sugar in world and Brazil is highest producer. Both Indian and Brazil has sugarcane crop failure. Hence world sugar futures hitting new highs.

Does it mean sugar companies will have better profits on back of high prices. Not entirely true. If there is no sugar cane available what will sugar companies crush. The plants will stay idle or due to reduced can juice the amount sugar converted will much less.

Those sugar companies in good rain areas with high capacity will definitely benefit. I will post list of those companies soon.

 

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