London, England -- (SBWIRE) --05/13/2011 -- Sugar prices could tumble should the output of the commodity surpass demand for a second year, according to spread betting and CFD trading provider City Index (http://www.cityindex.co.uk/).
Speaking to Bloomberg, Standard Chartered Bank analyst Abah Ofon said during 2011, the average prices of sugar futures could decline by approximately 15 per cent compared to the current level, before slightly recovering next year.
An increase in planting by farmers in response to a lift in sugar prices could now in fact see the value of the commodity retreat.
Commenting on the sugar market in Thailand, Mr Ofon said for the season beginning October, another year of surplus will be experienced.
Meanwhile, for the season ending September 30th, output is predicted to surpass demand by around one million metric tons.
The news resource noted that in February, sugar futures rose to 36.08 c (22 p) a pound in New York, the highest price seen since 1980.
It revealed yesterday (May 10th) that investors are worried that wheat supplies could be reduced due to dry weather across the US and Europe, pushing prices higher.
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