Raw sugar climbed to the highest level this week in New York on speculation rainfall will further damage Brazil’s crop and delay exports. Coffee rose.
High levels of rain in producing regions in Brazil this week will halt harvesting until at least June 8, Marco Antonio dos Santos, an agronomist at weather forecaster Somar Meteorologia, said in a report e-mailed on June 4. The wetter weather will hamper concentration of sugars in sugar cane, he said. The harvest in Brazil has made “sluggish progress” as a result of rains, Commerzbank AG said in a report yesterday.
“Bad weather and new upcoming ships will increase queues for vessels at roads and expected ones, mainly in Santos and Paranagua ports, where rains are prevailing and delaying operations,” Luiz Carlos dos Santos Jr., head of sugar brokerage and operations at SA Commodities, said in a report e- mailed yesterday. The two ports are Brazil’s largest.
Raw sugar for July delivery added 2.5 percent to 19.54 cents a pound by 6:56 a.m. on ICE Futures U.S. in New York after touching 19.57 cents. White, or refined, sugar for August delivery rose 1.3 percent to $560.60 a metric ton on NYSE Liffe in London, where trading was closed for the prior two sessions.
Rains, lengthy waits at ports and elevated prices for Thai sugar are helping support the premium buyers must pay to obtain raw sugar from Brazil, according to Swiss Sugar Brokers. Sellers to the Far East are now supplying sugar from Brazil instead of Thailand, the broker said in a report on June 3. The two nations are the leading global exporters of the sweetener.
Raw sugar for June loading at Santos was at a premium of 0.15 cent to 0.2 cent to ICE’s July contract on June 3, the broker said. That compares with a premium of 0.12 cent on May 27. In Thailand, raw sugar for June loading was at a premium of 1.80 cents to 2.50 cents on June 3, it said.
Arabica coffee for July delivery rose 0.7 percent to $1.5725 a pound on ICE. Robusta coffee for July delivery fell 0.2 percent to $2,153 a ton on NYSE Liffe.
Cocoa for July delivery fell 0.8 percent to $2,145 a ton in New York. Cocoa for July delivery rose 2.3 percent to 1,486 pounds ($2,302) a ton in London.
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