June 3 (Bloomberg) -- Sugar rose to a seven-week high in New York on speculation that supplies will be limited from Brazil, the world’s biggest producer. Coffee prices jumped.
ICAP do Brasil said that the nation’s sugar-cane crop may fall short of an industry group’s estimate for a record harvest in the season that began in April. Unica, the industry association, said last week that output in Brazil’s Center South, the world’s largest producing region, slumped 17 percent in the first half of May from a year earlier.
“The estimates seem to be moving lower,” said Michael McDougall, a senior vice president at Newedge USA in New York. “Sugar has shown an ability to try for higher levels.”
Raw sugar for July delivery rose 0.43 cent, or 1.8 percent, to settle at 23.95 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price touched 24.22 cents, the highest since April 15. The sweetener has gained for four straight weeks, the longest rally since November.
In March, Unica estimated the sugar-cane harvest in the Center South would reach 568.5 million metric tons this season. The total probably won’t top 550 million tons, Marcos Mine, head of the sugar-ethanol desk at ICAP do Brasil, said from Sao Paulo this week.
Arabica-coffee futures for July delivery surged 9.7 cents, or 3.7 percent, to $2.7095 a pound in New York, the biggest gain since April 5. The commodity has doubled in the past year.
In London, refined sugar and robusta coffee also advanced.
--Editors: Millie Munshi, Daniel Enoch
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