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International Trade Issues - Price supports and trade subsidies and restrictions and any changes that may be implemented could have an effect on sugar prices. There appears to be no end to issues with imports and exports of sugar including many countries that subsidize domestic production and maintain high import tariffs. Trading blocs and other groups of sugar producing nations will often argue these issues and more in venues such as the World Trade Organization and any statements or news from these organizations and countries is worth watching. Especially noteworthy for many traders is whether or not the US will maintain or adjust its tariff on sugar ethanol.

Health - Studies or announcements which link sugar to diabetes or any other disease are also worthy of note. Alternately, products like high fructose corn syrup - the sweetener of choice when sugar prices were considered to be too high for beverage and food producers - receiving unfavorable reports may swing the pendulum the other way.

Environmental Impact - Sugar cane requires nearly four times the amount of water as sugar beets do to process. Corn may require more input versus output when regarding ethanol fuel production. These issues and more will be important to take note of environmental concerns make headlines.

Weather - Like most agricultural products, sugar is susceptible to the same kinds of weather concerns regarding rainfall and temperature. Sugar beets are particularly at risk of frost since they are grown in cooler climates than cane and are rendered rather useless if hit by a cold snap.



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