Follow U.S. investment immigration and U.S. economic news: Due to a reduction in supply, international sugar prices have suddenly rebounded from a three-year low. To seize this opportunity, at least three American sugar companies are attempting to raise prices by one-third this year. This includes the well-known Domino Sugar and Imperial Sugar in the United States.
Domino Sugar, part of the American Sugar Refining Company, Imperial Sugar, under Louis Dreyfus Commodities, and United Sugars Corp notified customers of the latest price list in a letter earlier this month.
Traders state that the refined sugar output of these companies accounts for more than half of the annual 11 million tons produced in the United States—valued at approximately $7 billion last year. The new prices will set the tone for ongoing negotiations between sugar companies and customers. If successful, it may mark a turning point for the sluggish U.S. sugar market.
In a notification letter dated October 2, Domino Sugar listed the sugar price at $33 per hundredweight, or 33 cents per pound, FOB mill, effective immediately. Imperial Sugar subsequently announced a similar price list on October 9. This represents a decline of one-quarter from the sugar prices in October of last year, when the two companies quoted $38.50 and $44.50 per hundredweight, reflecting the sluggish market conditions.
Industry insiders indicate that this is still one-third higher than last month's spot prices for refined sugar, which were $25-27.
For many important consumers with long-term contracts, orders for this year's demand have already been completed.
Traders indicate that the price increase signifies the efforts of American sugar companies to establish a floor price, which may end a multi-year bear market, despite the oversupply from Brazil, Thailand, and Mexico still flooding the market.