Money

Sugar may aid Coke

(China Daily)
Updated: 2011-05-12 13:13

SINGAPORE - Sugar output may exceed demand for a second year after farmers boosted planting as futures surged, pushing prices lower, said Standard Chartered Bank. That may lower costs for drinks makers such as Coca-Cola Co.

Sugar futures will average 24 cents a pound (0.45 kilograms) in New York in 2011, about 15 percent lower than the average so far this year, before rebounding to 25 cents next year, said Abah Ofon, an analyst at the bank.

Futures surged to 36.08 cents a pound in New York in February, the highest price since 1980, boosting costs for food and drink makers. "The sugar price is coming down in the world market quite dramatically, so that will give us a different cycle for next year," said Robert Murray, chief financial officer at Coca-Cola Hellenic in Greece, on Tuesday.

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