Prices have touched a low of 21 cents a pound on changing fundamentals says, Sudakshina Unnikrishnan of Barclays Capital.
The global supply-demand dynamics were fluctuating in a very narrow band with a confusion of whether there could be a slight slack or surplus. But now, after this Australian event, it seems that it could decisively tilt into the favour of deficit.
With high uncertainty around Brazil’s harvest projections, floods hitting Australia, the world's 3rd largest exporter the global demand supply situation on sugar looks unclear. However, Sudakshina Unnikrishnan of Barclays Capital expects a modest surplus in the sugar market in 2011.