My mind works in mysterious ways. All day, I’ve been brainstorming/obsessing over the sudden and precipitous drop in the price of sugar and how it relates to the market. Traditionally, confectioners and beverage companies drive the price of sugar. More recently, due to “green initiatives,” sugar based ethanol has contributed to the price as well.
Sugar is now at 7 month lows, as shown by [[SGG]] . The drop is being attributed to a strong Brazilian crop, coupled with stiff reluctance from confectioners, The Hershey Company [[HSY]] , Tootsie Roll Industries, Inc. [[TR]] etc. and beverage companies, PepsiCo, Inc. [[PEP]] , The Coca-Cola Company [[KO]] , Hansen Natural Corporation [[HANS]] , Dr Pepper Snapple Group Inc. [[DPS]] refusing to pay up for the sweet shit. My question to you is why?
It is a little known fact that national growth and strength coincide very nicely with beverage consumption. Has everyone, suddenly, decided to guzzle coffee, Green Mountain Coffee Roasters Inc. [[GMCR]] , instead?
The Important Matter of the Price of Sugar mystery is ongoing, by yours truly. More later.
Top picks: [[TLT]] , [[TAN]]