Sugar Falls as Europe, India Output May Increase; Coffee Rises
September 23, 2011, 8:04 AM EDTBy Isis Almeida
Sept. 23 (Bloomberg) -- Sugar fell for a third day in New York on speculation supplies will be enough to meet demand due to expanding crops in Europe and India, the world’s second- largest producer. Coffee slid as commodities fell.
Sugar production in India may surge to 25.83 million metric tons, the highest level in four years, a compilation of estimates by sugar cane commissioners of 10 states including Uttar Pradesh and Maharashtra, the biggest growers, show. Europe’s crop for the season starting Oct. 1 will be 30 million tons, the highest since 2005-06, F.O. Licht estimates.
“The supportive effects of recent concerns about lower Brazilian sugar output were offset by better output figures for India, Australia and Europe for the coming season,” Lysu Paez, an analyst at Natixis SA in Paris, said in a report e-mailed yesterday.
Raw sugar for March delivery dropped 1.4 percent to 24.47 cents a pound by 7:07 a.m. on ICE Futures U.S. in New York. The price fell as much as 5.8 percent yesterday. White, or refined, sugar for December delivery slipped $13.60, or 2.1 percent, to $626.40 a ton on NYSE Liffe in London.
The sugar cane crop in Brazil’s main producing region will drop for the first time in a decade to 510.2 million tons in the 2011-12 season, according to industry group Unica. The South American country is the world’s largest producer of sugar.
White sugar has fallen 15 percent in London and 7 percent in New York in the third quarter.
Indian Exports
India may have an exportable surplus of 4 million tons in the year starting Oct. 1 as output surges, according to the National Federation of Cooperative Sugar Factories Ltd.
Arabica coffee for December delivery fell 0.3 cent, or 0.1 percent, to $2.3895 a pound in New York. Robusta coffee for November delivery retreated $3, or 0.2 percent, to $2,023 a ton on NYSE Liffe.
Robusta coffee stockpiles in warehouses monitored by NYSE Liffe were 378,210 metric tons as of Sept. 19, down from 388,940 tons two weeks earlier, according to figures on the exchange’s website yesterday.
Cocoa for December delivery was down $8, or 0.3 percent, to $2,672 a ton in New York. Cocoa for December slid 17 pounds, or 1 percent, to 1,756 pounds ($2,709) a ton in London.
--Editors: Claudia Carpenter,
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
