Sugar

Unlike other commodities which are only used by individuals and specific industries, sugar is consumed all over the world and by most of the population. This has a major impact on the price of sugar:

• Supply and demand are, as usual, important to the process of determining the price of sugar. However, as mentioned, sugar is used by almost everyone so more people have access and effect the price.
• As a derivative of the previous factor, many bodies fight the usage of sugar – as it is a cause of diabetes, obesity, teeth related issues and more. Countries want to narrow sugar induced health problems can change their policy regarding sugar, which can bring about a massive change in its demand rate.
• A large portion of the sugar comes from Europe. As a matter of fact, Europe is the second largest sugar exporter in the world. Should import and export rates change, it could affect the supply numbers which could lead to a massive change in sugar price.
• Today people are more and more aware to the dangers of sugar, and look for alternatives such as corn syrup and others. This could lead to an fluctuations of sugar prices and more people looking for a new sweetener for their food and drinks.