According to Australia and New Zealand Banking Group, China’s sugar imports in 2014 could fall by half to 2 million tons because of strong imports in 2013 resulting in high domestic inventories. In 2013 China is on track to import over 4 million tons of sugar – the highest amount in a calendar year since the mid-90’s. China has stockpiled sugar for years at above-market prices to support Chinese farmers causing domestic prices to rise and then causing an increase in imports. This will cut the need for imports in 2014, placing a cap on global sugar prices. Sugar prices fell to a low of 16.80 cents per pound because of abundant global supply even after hitting a one-year high of 20.16 cents per pound on October 18th because of a devastating fire at a sugar warehouse in Brazil, the world’s top sugar producer.
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