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Friday, September 11, 2009

Sugar highs?


PIMCO just came out with a new letter. El-Erian has misspoke. He meant that the commodity, sugar, was high!

Now of course, we won't ever read those headlines. But it seems there is a fundamental reason behind sugar's move.

Maybe there is also a fundamental move behind the market!

The Honorable Thomas J. Vilsack
Secretary U.S. Department of Agriculture
Jamie L. Whitten Federal Building
1400 Independence Avenue, S.W.
Washington, DC 20250

Dear Mr. Secretary:

The organizations and companies below urge you to increase the sugar import quota immediately. Your experts forecast unprecedented shortages without prompt action.

According to USDA's World Agricultural Supply and Demand Estimates, the United States will end the next fiscal year with less than 13 days' worth of sugar on hand, unless imports are increased. If this forecast is accurate, our nation will virtually run out of sugar.

The shortage does not have to happen. The only reason markets are forecast to be so tight is the restrictive U.S. policy on sugar imports. Imports are subject to restrictive quotas.

But you have the authority to increase the sugar import quota, and we urge you to do so immediately, both for the current fiscal year - where high prices already indicate a painfully tight market - and for the upcoming year.

Without a quota increase, consumers will pay higher prices, food manufacturing jobs will be at risk and trading patterns will be distorted. Please act now in the interest of all Americans.

Sincerely

American Bakers Association
American Beverage Association
Blommer Chocolate
Competitive Enterprise Institute
ConAgra Foods, Inc.
Consumer Federation of America
Council for Citizens Against Government Waste
Emergency Committee for American Trade
General Mills, Inc.
Gonella Frozen Products
Grocery Manufacturers Association
The Hershey Company
Independent Bakers Association
International Dairy Foods Association
Kraft Foods
Krispy Kreme Doughnut Corp.
Mars, Incorporated
National Confectioners Association
Nestle USA
Pepperidge Farm
Sweetener Users Association
Unilever United States, Inc.
U.S. Chamber of Commerce

3 comments :

Anonymous said...

why the little sell off today?

palmoni said...

Bulls leaving for vacation!

Anonymous said...

good day to pick some stuff up then.