Chart of the Week: Corn Sugar HFSC55 vs Fructose Sugar spread a 15 year high.

HSFC55 over Sugar Monthly 1999-2014

On the international market Sugar is at 14c/pound, imported sugar delivered in NY is at 19c/pound while Corn HFCS 55 is priced at 29c/pound.

North American Food Industry will adapt their Recipe/blend in 14′ because the trade-off is worth the switching cost. They say yes, it’s worth the pain of buying imported sugar from traders and change their recipes.

Corn sugar vs Fructose sugar is at a 15 year high.

Not a good news for corn millers Cargill Inc.  Archer-Daniels-Midland Co.  Tate & Lyle Plc. and Ingredion Incorporated but a huge switch option and cost saving opportunity for sugar buyer like Coca Cola Company, Pepsi Co, Nestlé, ConAgra Foods…

It is interesting because in 2014 U.S Ethanol is very competitive in the energy markets whereas Corn-Sugar is not in the food market.

-2014  The Trade Shipping and Finance Wizard ©

Reading

Midwest Wet Corn Crush Spread; Sugar and HFCS

 https://jacquessimon506.wordpress.com/2013/04/01/midwest-wet-corn-crack-spread-sugar-and-hfcs-part-i/

 

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