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View Diary: I Came Back From Cuba Today (265 comments)

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  •  Mr.SeeMore - NOTHING (0+ / 0-)

    Sugar already trades in a world wide market.

    "let's talk about that"

    by VClib on Wed May 19, 2010 at 07:34:09 AM PDT

    [ Parent ]

    •  But our sugar industry does not allow the (0+ / 0-)

      world market prices here. They have a monopoly and have protected themselves very well with marketing orders, price and import level controls, and tariffs.
      As a result we pay double the world market price for our domestic sugar.

      Sugar #11 (world) contract price is about 15 cents/lb.

      The Sugar No. 11 contract is the world benchmark contract for raw sugar trading. The contract prices the physical delivery of raw cane sugar, free-on-board the receiver's vessel to a port within the country of origin of the sugar.
      Deliverable Growths
      Growths of Argentina, Australia, Barbados, Belize, Brazil, Colombia, Costa Rica, Dominican Republic, El Salvador, Ecuador, Fiji Islands, French Antilles, Guatemala, Honduras, India, Jamaica, Malawi, Mauritius, Mexico, Mozambique,Nicaragua, Peru, Republic of the Philippines, South Africa, Swaziland, Taiwan, Thailand, Trinidad, United States, and Zimbabwe.
      Delivery Points
      A port in the country of origin or in the case of landlocked countries, at a berth or anchorage in the customary port of export.

      Sugar #16 (US domestic) contract price is around 31 cents.

      The Sugar No. 16 contract serves the hedging needs of U.S. sugar producers, end users and merchants. The contract prices physical delivery of US-grown (or foreign origin with duty paid by deliverer) raw cane sugar at one of five U.S. refinery ports as selected by the receiver.
      Deliverable Growths
      Cane sugars of the United States, duty free foreign origin, duty paid and delivered in bulk.
      Delivery Points
      New York, Baltimore, Galveston, New Orleans and Savannah.

      But, yeah, you're technically right, nothing would happen to the US domestic price because sugar is another favored monopoly industry here.
      C'mon, VClib, you knew that right?
      Just being a little deceptive with  Mr.SeeMore, eh?

      Republicans: "Double your pleasure, double your fun, double your National Debt, and blame 'The One' "

      by Bluefin on Wed May 19, 2010 at 05:38:33 PM PDT

      [ Parent ]

      •  Bluefin - thanks for the information (1+ / 0-)
        Recommended by:
        Bluefin

        I was under the misunderstanding that domestic sugar was in a free market competition with suppliers from other countries. Thank you for correcting me.

        "let's talk about that"

        by VClib on Wed May 19, 2010 at 10:42:48 PM PDT

        [ Parent ]

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