Monday, August 6, 2012
Corn and Sugar Commodity Prices
The price of sugar will also rise. Even though the sugar beet harvest to my knowledge hasn't been impacted by the drought, the higher HFCS prices will drag the price of sugar with it.
Many bee suppliers of HFCS buy contracts of thousands of lbs of HFCS for a set price. Once the contract is satisfied a new one is negotiated. This new contract will undoubtedly be a higher price.
As a hobby beekeeper buying some extra sugar is not a bad idea. Long term storage of sugar can make the sugar get hard and difficult to liquify. ProSweet does have an advantage that it will not granulate for at least a year and will store nicely.
The silver lining in this all is that the price of honey will also rise. Hopefully the higher honey prices will more than offset the sugar shock that beekeepers may see down the road.