Bloomberg News

Sugar Rises on Brazil Output Concern; Coffee Falls; Cocoa Gains

June 20, 2011

June 20 (Bloomberg) -- Sugar rose to a two-month high as shipping delays mounted in Brazil, the world’s biggest exporter. Coffee declined to the lowest price since February, while cocoa advanced.

Backlogs of sugar shipments from Brazilian ports are expected to last an additional 20 to 30 days, according to Datagro Ltd., an industry researcher. Last week, futures in New York climbed 3.4 percent, the sixth straight gain.

“Brazil is the main reason why market is rising,” said Juliano Ferreira, a broker at ICAP Do Brazil Ctvm in Sao Paulo. “We are at levels consistent with supply concerns.”

Raw sugar for October delivery climbed 0.83 cent, or 3.3 percent, to settle at 26.21 cents a pound at 2 p.m. on ICE Futures U.S. in New York, the most since June 2. Earlier, the price reached 26.31 cents, the highest for a most-active contract since April 12. The commodity has jumped 70 percent in the past year.

Arabica-coffee futures for September delivery fell 6.2 cents, or 2.5 percent, to $2.463 a pound on ICE. Earlier, the most-active contract touched $2.4615, the lowest since Feb. 1.

Cocoa futures for September delivery advanced $51, or 1.7 percent, to $2,968 a metric ton in New York.

On NYSE Liffe in London, refined sugar and cocoa rose, while robusta coffee fell.

--With assistance from Isis Almeida in London. Editors: Daniel Enoch, Steve Stroth.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.


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