The USDA's latest report on domestic sugar stocks is bearish for prices.
In other words, there's gonna be a lot of sugar to go around.
The agency is projecting production for 2012/2013 to be 7.9 million tons, the most since 2000.
In the past 12 months, we've produced 7.6 tons.
Not surprisingly, prices are gonna go down plummeting: the agency says prices are likely to fall to levels in the high teens (so $0.15-$0.19 per pound), down from their current levels in the twenty-cent level.
But U.S. prices are increasingly influenced by global prices, and the agency cautions that there remains some uncertainty — weather abroad in particular could change pricing models.
