Why prices of sugar, corn are high? 04/18/2011

Why prices of sugar, corn are high?

04/18/2011
DAVAO CITY — Sugar supply has been declining worldwide not because more people are consuming more sugar. As global demand is now outpacing sugar supply and production worldwide, sugar prices have been rising to levels not seen since the historic highs of 1975 and 1982.

Since sugar and corn are now being used as raw materials for the production of ethanol — used to mix with gasoline to make clean “eco-fuel” — consumption of these two essential commodities is being diverted more and more for industrial use. As such, we’re likely to see less and less sugar supply available for consumers worldwide..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/nation/20110418nat5.html