04-23-2013, 11:46 AM
(04-23-2013, 11:16 AM)Roberton3 link Wrote:Dextrose from US corn isn't the cheapest sugar in the world: despite all the factors Publius mentions, cane sugar (from Brazil and other places) is still cheaper on the world market. Sugar from corn dominates the US market because we have limits (either tariffs or quotas -- I can't remember which) on imported sugar. As a result of those limits on imports, the US price of sugar is well above the world price (often twice as high). That's why US Cokes are made with corn syrup, while Cokes sold most other places in the world are made with cane sugar.
US sugar in the form of Raw Sugar (#11) is indeed more expensive because of the tariff. I checked and need to correct my prior statement. Prior to the corn drought, 95 Dextrose, which is the closest equivalent to Raw Sugar #16 (raw sugar without the tariff) was cheaper. Right now Dextrose is a little more expensive. My expectation is that once corn stabilizes, 95 Dextrose will be cheaper again. Basically costs have been rising in Brazil. Then again, we are dealing with commodities so who the hell knows what the future holds. My basic point is that US is a lot more cost competitive in the production of raw sugar than people realize. This, cheap natural gas, and logistics is why much of the planning for building capacity for industrial products made from sugar is shifting back to the US from Brazil.

