Sugar Gains in New York on Lower Supply From Brazil
Category: Sugar
(Bloomberg) – Sugar rose in New York on lower supply from Brazil, the world’s largest producer and exporter. Cocoa and coffee declined.
Sugar-cane yields in Brazil’s Center South, the world’s top producing region, fell to 69 metric tons a hectare (2.47 acres) this year, the lowest in 24 years, Luiz Antonio Dias Paes, a director at Brazilian sugar-cane research center CTC, said in Sao Paulo this week. Before today, the sweetener plunged 29 percent this year as crops expanded in Russia and Europe.
“Brazil may be down in their southern region in regards to sugar production, which is helping to support prices,” said Hector Galvan, a senior commodities broker at RJO Futures in Chicago. “The sugar market is looking for direction on any piece of news that’ll send it higher again.”
Raw sugar for March delivery gained 0.3 percent to 22.86 cents a pound at 10:59 a.m. on ICE Futures U.S. in New York. Prices fell 2.7 percent yesterday.
Sugar output in Brazil’s Center South, the world’s largest producing region, dropped to 498,600 tons in the second half of November from 1 million tons a year earlier, industry association Unica said on Dec. 13. Global sugar supplies will exceed demand by 4.4 million tons in the season started Oct. 1, Societe Generale estimates.
Cocoa for March delivery dropped 1.8 percent $2,140 a ton on ICE. Before today, the chocolate ingredient tumbled 28 percent this year.
Arabica-coffee futures for March delivery fell 0.3 percent to $2.174 a pound. Before today, the price dropped 9.4 percent in 2011.
In London futures trading, refined sugar advanced as robusta coffee and cocoa fell on NYSE Liffe.
To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
