“The world has enough sugar right now,” Dobrydney said. He noted that other crops grown in the United States are down even more but that coffee and cocoa are higher.
“Take coffee and cocoa out of the equation and commodities are not having a good year,” he said.
“Speculators have left the [sugar] scene,” Dobrydney said. “There is persistent weakness in the Brazilian economy.
“But dryness in Brazil could affect this year’s crop and next year’s, he said.
Brazil is the world’s largest sugar exporter.
Rob Johansson, director of economics and policy analysis at the American Sugar Alliance, noted that transportation costs for agricultural products have risen whether on land or sea.
Johansson also said the U.S. sugar program “tempers” price volatility in the United States and that he expects record U.S. production this year.
Elaine Trevino, associate administrator of the Agriculture Department’s Foreign Agricultural Service, said, “Of all the commodities I work on, sugar has been the most complex.”