Commodities: Soaring Sugar

For the past four years, the world's supply of sugar has outrun demand so consistently that sugar-beet and sugarcane growers cut back on their plantings in 1962. But Europe's winter storms damaged beet crops there, and the yield of Cuba's inefficiently handled cane crop seems certain to be some 15% less than last year. As a result, speculators gambling on the likelihood of sugar shortages later this year have been pushing up the price of sugar futures. Last week these prices reached their highest levels in 40 years. Raw sugar futures were up as much as 35¢ per 100 lbs.

To offset a rise in raw prices, the big U.S. sugar refineries have raised prices on refined sugar to the highest since the early 1920s. Such companies as American Sugar, SuCrest and National Sugar have hiked prices twice within a month, to $10.25 per 100 lbs. The consumer will soon feel the difference. Many big sugar users—particularly soft-drink bottlers, canners and bakers—are planning to raise their prices, and candymakers are talking again of cutting back on the size of their candy bars.