Bloomberg News

Sugar Falls as Rains Seen Boosting Brazilian Production

June 14, 2012

Sugar fell for a third day in New York on speculation that rains causing harvest delays in Brazil will help boost production later in the season. Cocoa advanced, and coffee declined.

Rainfall delayed harvesting and shipments last week from the main growing areas in Brazil, the world’s largest sugar grower and exporter, sending prices up 4.7 percent. Precipitation may be beneficial to cane fields in the long-run because the plants will grow more, Naim Beydoun, a broker at Swiss Sugar Brokers, said by telephone from Rolle, Switzerland.

“The upside momentum has seemingly stalled,” Thomas Kujawa, the co-head of soft commodities at Sucden Financial Ltd., wrote in a report e-mailed today. “The trades seem to be all gearing up for a strong Brazil tail to the crop.”

Raw sugar for October delivery fell 0.9 percent to settle at 19.51 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Refined-sugar futures for August delivery dropped 0.3 percent to $566.70 a metric ton on NYSE Liffe in London.

Cocoa futures for September delivery advanced 0.2 percent to $2,263 a ton in New York.

Arabica-coffee futures for September delivery slid 2 percent to $1.5105 a pound on ICE.

In London, cocoa rose, and robusta coffee was little changed.

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


The Aging of Abercrombie & Fitch
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus