This week, I observed some commodity news regarding Canada, which I found pretty interesting. Rogers, Canada’s biggest refined sugar group, said that its overall volumes in the year to the end of September fell 1.2% to 641,573 tonnes, undermined by the loss of some key contracts late in 2011 and a switch abroad by some customers of food manufacture.

The drop in sugar prices, against strong grain markets, has prompted some reversal in the switch by food and drinks groups towards corn-based sweeteners, Rogers Sugar said, foreseeing the potential for a further increase ahead.

High-fructose corn syrup (HFCS) as it literally shows, are exacted from corns. This news break out are basically forecasting potential increase in corn prices.

As shown in the graph, in this past trading week, corn price indeed increased.

References:

1. Sugar syrup ‘regaining ground’ against HFCS.  <http://www.agrimoney.com/news/sugar-syrup-regaining-ground-against-hfcs–5249.html >

2. http://www.plus500.com/Instruments/ZC?searchInst=corn