After a five-year surplus that pushed sugar prices to the lowest since 2008 in late August, demand is expected to outpace supply in the 2015-16 season.
“The end of the surplus cycle is probably the main reason why people are betting on further price rises,” Michaela Kuhl, an analyst at Commerzbank, told Bloomberg. “We’ll see how much of that will really materialize.”
iPath Bloomberg Sugar Subindex Total Return ETN
For more information on the sugar market, visit our sugar category.
Max Chen contributed to this article.