Taken from 10/19/10 article on MSN.
"...droughts in South America have pushed down sugar cane forecasts and should ultimately result in high sugar prices. Brazilian company Cosan Ltd. last month revised its 2011/12 sugar cane crush forecast downwards. Also, the Environmental Protection Agency's recent approval for an increase of the percentage of ethanol allowed in gasoline from 10% to 15%, could increase demand for sugar and further affect prices."
http://articles.moneycentral.msn.com/news/article.aspx?Feed=MW&Date=20101019&ID=12191289&Symbol=US:HSY
Yeah but what they won't tell you that would keep the prices stable is that Archer Daniels Midland has been working on using leftover cane byproducts and grasses to produce ethanol and that sugar isn't necessary any more. Plus, they are studying soy beans, soy bean plant byproduct and corn along with its byproduct.
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