You’re already suffering the indignity of paying too much at the pump, but must you now pay more at the candy machine, too?
Okay, we’re poking a bit of fun; a spike in gas prices doesn’t compare to a spike in the cost of a candy bar. Except we’re not just be talking candy bars. We’re talking sugar; a key component in almost everything we eat.
And it’s getting more expensive. In fact, the spot price has reached its highest level in 28 years!
The sharp increase has Kraft , General Mills and Hershey worried.
So worried that together they penned a letter to the Agriculture Secretary warning that unless prices ease "consumers (could) pay higher prices, food manufacturing jobs could be at risk and trading patterns could be distorted."
American sugar growers aren’t buying it. They say the price will come down as the domestic harvest gets underway. The higher prices, they say, largely stem from bad weather in Brazil and India that has reduced crops there.
Considering Americans love their sweets, how can you profit from this pain?
I’d play the trend with Cosan or Corn Products International, explains Tim Seymour. I expect both stocks to get upgrades and both should benefit from sugar's price surge.