Sugar Industry Update 3

Research report by 'Ventura Securities Ltd'
     
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Sugar sector to remain Bullish in H1 2010

Declines in the Brazilian sugar cane yields owing to weather related issues, two consecutive shortfalls in the Indian sugarcane crop and a sharp drawdown in world stocks will reduce the supplies of sugar in the world markets. In addition strong near term demand continues from India, Pakistan, Indonesia and to some extent China and Russia, while sharp draw downs are seen in world sugar inventories. All these combined will help to maintain buoyancy in sugar prices, at least in the first half of CY2010.


   
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