Raw Sugar Falls to Seven-Week Low

(Wall Street Journal) – Raw-sugar futures fell to a seven-week low on Thursday, as light demand and robust supplies countered concerns over how a drought in top producer Brazil would affect this season’s crop.

Raw sugar for July on ICE Futures U.S. fell as low as 16.91 cents a pound, the lowest since April 16. The contract was recently down 0.5% at 16.96 cents a pound.

“Despite the drought in Brazil, supplies seem more than adequate right now,” said Jack Scoville, a vice president at Chicago brokerage Price Futures Group. “There hasn’t been much in the way of demand news. There is usually a lot of demand this time of the year because of Ramadan.”

Demand for sugar often climbs ahead of the monthlong Muslim holiday, which is marked by daytime fasting and sugary treats after sundown.

Mr. Scoville estimates raw-sugar prices could fall as low as 16 cents a pound.

Cotton for July was down 0.2% at 85.90 cents a pound. Net export sales of U.S.-grown, upland variety cotton totaled 131,500 bales in the week ended May 29, up 2% from the four-week average.

Despite the increase in demand, recent rains in top U.S. growing region West Texas will likely boost production this year, traders and brokers said.

Arabica coffee for July was 0.2% lower at $1.6990 a pound. Cocoa for July rose as high as $3,106 a ton, the highest since Sept. 2, 2011, as prices for cocoa butter, the key ingredient in chocolate that gives it its texture, continued to rise.

Frozen orange-juice concentrate was 0.2% higher at $1.64 a pound