July 14 (Bloomberg) -- Sugar fell the most in eight weeks on signs that production in Brazil, the world’s biggest grower, will be higher than some analysts expected. Coffee and cocoa retreated.
The sugar industry group Unica cut its output forecast for the Center South, Brazil’s largest producing region, by 2.2 million metric tons to 32.4 million. Analysts expected at least a 3 million-ton reduction due, said Jack Scoville, a vice president for Price Futures Group Inc. Before today, prices rose 24 percent in the past month on supply concerns.
“The production estimates show the situation is not as bad as people were expecting,” Scoville said in a telephone interview from Chicago. “Production in other parts of the world seems strong. Bears keep pointing to increased supplies around the world as a reason to see futures move lower.”
Raw sugar for October delivery dropped 1.22 cents, or 4 percent, to settle at 29.02 cents a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest loss since May 19. Yesterday, before Unica’s report, the price touched a five-month high of 31.33 cents.
Unica’s numbers “fell within expectations,” Paul Deane, an economist at Australia and New Zealand Banking Group Ltd. in Melbourne, said in a report e-mailed today.
Arabica-coffee futures for September delivery slid 5.6 cents, or 2.1 percent, to $2.5835 a pound on ICE.
Cocoa futures for September delivery dropped $14, or 0.4 percent, to $3,156 a metric ton in New York.
In London, refined sugar, cocoa and robusta coffee declined on NYSE Liffe.
--Editors: Daniel Enoch, Patrick McKiernan.
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