July 27 (Bloomberg) -- Sugar gained for the second straight day as output in Brazil, the world’s biggest exporter and producer, may fall because of adverse weather. Coffee declined, while cocoa advanced.
Sugar output in Brazil’s Center South, the country’s main producing region, may decline 7.5 percent from a year earlier because of dry weather and a frost earlier this month, Michael McDougall, a senior vice president at New York-based commodity broker Newedge, said today in a telephone interview. Futures in New York are heading for a third straight monthly advance.
“The sugar content has been lower than expectations and that is a cause of concern,” Ricardo Scaff, a trader at Rabobank International in New York, said in a telephone interview. “Many analysts are revising their estimate downwards for the Center South crop.”
Raw sugar for October delivery rose 0.19 cent, or 0.6 percent, to settle at 31.13 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The commodity has climbed 69 percent in the past year.
Arabica-coffee futures for September delivery retreated 3.75 cents, or 1.5 percent, to $2.412 a pound in New York, the biggest decline since July 19.
Cocoa futures for September delivery rose $21, or 0.7 percent, to $3,036 a metric ton on ICE.
On NYSE Liffe in London, refined sugar and robusta coffee dropped, while cocoa advanced.
--Editors: Millie Munshi, Patrick McKiernan
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