Sugar Prices Look a Little Sweeter

Valentines day has come and gone, and the cost of sweets and chocolates left many consumers with a bad taste in their mouth.

But, as Brazil hints at a boost in supply, the record rise in wholesale sugar prices may get a bit of a break.

Foul weather in Australia and other sugar growing nations had led to high sugar prices worldwide. For food manufacturers this could mean double the price for popular sweets and higher costs for foods that use significant amounts of sugar.

According to a spokeswoman for the National Confectioners Association, small candy makers are hardest hit. With few other products to absorb costs, confectioners have no other recourse but to either raise prices or absorb higher sugar prices.

But Brazil is hinting at an increase in their yield that could offer some relief. Their crop this year is predicted to come in at least 3.4% higher than last year. Speculation alone brought sugar prices to 27.85 cents per pound, the lowest since December 2010.

If Brazil's predictions are correct, sugar prices will stabilize and perhaps even reverse direction.

With some luck those chocolate easter eggs may cost less, and food manufacturers and restaurants can enjoy a little breathing room.