Sugar prices hit eight-month high

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Associated Press

Posted on June 18, 2014 at 4:00 PM

Updated Wednesday, Jun 18 at 4:02 PM

Sugar prices were rising to their highest level in eight months on supply worries out of Brazil and India, the world's two largest sugar producers.

Sugar rose 0.4 of a cent, or 2.5 percent, to 18.3 cents a pound. That's the highest level for sugar since October.

Brazil is considering a change in its ethanol gasoline fuel to contain a higher percent of ethanol, Reuters reported Wednesday. Brazil uses sugarcane to formulate its ethanol, unlike the U.S. where corn is primarily used. If Brazil were to use more sugarcane as fuel, it would tighten sugar supplies.

Other agricultural commodity prices also rose. Wheat rose 1 percent to $5.87 a bushel, Corn rose 0.6 percent to $4.41 a bushel and soybeans rose 1 percent to $14.09 a bushel.

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