In the July USDA Supply and Demand Report there was a shift in the price index of both sugar and high fructose corn syrup.
"There is some evidence that relatively speaking HFCS prices have been higher than last year and until recently sugar prices have been lower than last year," says World Agricultural Outlook Board Chairman Gerry Bange. "We are hearing indications that there are a number of consumers of HFCS that are switching back to sugar in some cases."
The lower sugar price in comparison to corn sweeteners is reflected in the sugar supply for both this current season and next year in the category of domestic deliveries.
"We do see a very sharp increase in this month's report for the 2007-2008 year which is not over of course with regard to sugar supply and demand," Bange says. "We did increase that to 10.615 million short tons and reflects much higher deliveries than we had estimated earlier."