(Bloomberg) – Raw sugar fell for a second day in New York on speculation a weaker Brazilian currency will spur more selling from the world’s largest producer. Cocoa slipped.
Brazil’s real lost 1.9 percent yesterday against the dollar, the most among emerging-market currencies, on concern the government is doing too little to control budget deficits and avoid a credit-rating cut. Declines by the Brazilian currency, which slumped 3.4 percent in a month, tend to encourage export sales of local sweetener priced in dollars.
“Brazil real weakness in the last 24 hours has stalled the market,” James Kirkup, a London-based broker at ABN Amro Markets U.K. Ltd., said by e-mail. “It’s what weighed on the market from mid-session yesterday.”
Raw sugar for delivery in March slid 0.2 percent to 18.22 cents a pound by 6:18 a.m. on ICE Futures U.S. in New York. Refined, or white, sugar for the same delivery month gained 0.1 percent to $484.80 a metric ton on NYSE Liffe in London.
Brazilian government officials defended their fiscal policy after a report last week showed that the deficit swelled in September to almost the widest level since the global financial crisis in 2008.
Thailand, the world’s second-biggest sugar exporter, sold 60,666.66 tons of raw sweetener to Agro Grain, Cargill and Vitol, according to Thai Cane & Sugar Corp. The sales took place at premiums to futures prices of 0.71 cent to 0.85 cent a pound, depending on quality and shipment period.
Premiums “were low and symptomatic of the record forthcoming Thai crop,” Kirkup said.
Cocoa for delivery in March fell 0.1 percent to $2,743 a ton on ICE. Cocoa for the same delivery month slid 0.1 percent to 1,736 pounds ($2,795) a ton on NYSE Liffe.
Arabica coffee for delivery in December was little changed at $1.035 a pound in New York. Robusta coffee for delivery in January fell 0.5 percent to $1,468 a ton in London.
