Article Response 1 Econ 102

Article Response 1 Econ 102 - Sugar Prices Hit New Heights...

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Sugar Prices Hit New Heights on Australian Cyclone FEBRUARY 3, 2011 By LESLIE JOSEPHS And CAROLINE HENSHAW NEW YORK—Sugar prices spiked to their highest level in more than 30 years as a massive tropical cyclone slammed into the northeast coast of Australia, the world's third-biggest exporter of the sweetener. Raw sugar futures jumped 4% to settle at 35.31 cents a pound on Wednesday after trading as high as 36.11 cents. Sugar cane is harvested on a farm in Queensland, Australia, a prime growing and milling region. Cyclone Yasi, which officials say is one of the strongest storms to ever hit Australia, made landfall on the Queensland coast, which was ravaged by floods just weeks ago. Yasi "is playing into the psychology of the sugar market," said Luis Rangel, a vice president at ICAP Futures. "This just gives [the market] an extra boost." Prices for raw sugar, which is refined into the white sugar sold to consumers, have soared 73% over the past five months as demand has outpaced the supplies available on the global market. Wednesday's surge in sugar further illustrates the broader rise in food prices. Wheat futures jumped 3.3%
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This note was uploaded on 01/25/2012 for the course ECON 102 taught by Professor Rossana during the Winter '08 term at University of Michigan.

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Article Response 1 Econ 102 - Sugar Prices Hit New Heights...

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