Sugar Prices Boom, More Cane Seen Used for Biofuel

Sugar is a star among commodity markets, with prices at 25-year peaks and possibly heading higher as investors see potential to divert more cane to make biofuel.

..The problem, some analysts say, is that output by the European Union is likewise expected to fall due to price-slashing reforms in its sugar regime, and drought has affected supplies from key exporter Thailand.

Traders expressed concerns that the sugar market could be a bubble about to burst.

Planet Ark