Sugar Cane

According to the Wall Street
Journal Online, Central American countries are planning growing more than the
normal amount of sugar cane this year. Normally growing more or less than the
usual or needed amount would affect the price in some way but in this case
governments are planning this increase to ensure that prices stay relatively
the same. This is necessary after droughts hit Mexico’s sugar cane fields,
rendering them useless. This plan will keep the prices stable until it is clear
that Brazil, which is the World’s top grower of sugar cane, is going to have a
strong output. I think this is a very proactive and intelligent plan by the
growers of Central America. Although it may affect the price in the
participating countries; it keeps the overall price of sugar cane stable. This
may also set a precedent that will allow for sugar cane prices to remain stable
in the years to come.