Oct. 21 (Bloomberg) -- Sugar prices fell for the third straight day on prospects for higher output in Brazil, the world’s biggest exporter. Orange-juice futures rose.
Brazil’s Center South, the main growing region, may produce 135.5 kilograms of sugar per metric ton of cane, up from a forecast of 134.5 kilograms, Caio Carvalho, a director at Canaplan, a consulting company, said today in the city of Guaruja. Earlier, futures rose as much as 2.1 percent on speculation that European policy makers are moving closer to resolving debt woes.
“Seeing higher yields and larger supply will quell buying interest,” Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “That’s pushing buyers to the sidelines.”
Raw sugar for March delivery fell 1.2 percent to 26.48 cents a pound at 2 p.m. on ICE Futures U.S. in New York. This week, the price dropped 5.2 percent. The commodity has dropped 27 percent from a 30-year high of 36.08 on Feb. 2.
Traders and analysts are the most bearish in almost three months on mounting speculation that supplies will outpace demand for the first time in four years, a Bloomberg survey showed.
Thailand, the second-largest exporter, expects a second straight year of record production with cane output reaching 100 million metric tons, Piromsak Sasunee, the chief executive officer of Thai Sugar Trading Corp., the nation’s biggest shipper, said yesterday.
Refined-sugar futures rose on NYSE Liffe in London.
Orange-juice futures for January delivery gained 0.5 percent to $1.702 a pound in New York. This week, the price climbed 1.6 percent, the third straight gain.
--With assistance from Lucia Kassai and Supunnabul Suwannakij in Bangkok. Editors: Patrick McKiernan, Steve Stroth
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