Sugar fell for a second day in New York as dry weather in Brazil, the world’s largest producer, helped accelerate harvesting and increased production in the first half this month. Coffee advanced.
Sugar output in Brazil’s center south, the main producing region, rose 2 percent to 2.64 million metric tons in the first half of July, industry group Unica said on July 25. Cane-growing areas will get more dry weather through the beginning of August, Celso Oliveira, a meteorologist at Sao Paulo-based forecaster Somar Meteorologia, said by phone yesterday.
“We suspect participants had been waiting for Unica’s report on the crush activity in Brazil center south for the first fortnight in July to act,” Nick Penney, a senior trader at Sucden Financial Ltd. in London, wrote in a report e-mailed today. “The report was construed as bearish.”
Raw sugar for October delivery slid 1.2 percent to 22.22 cents a pound by 7:32 a.m. on ICE Futures U.S. in New York. White, or refined, sugar for October delivery fell 0.9 percent to $609.70 a ton on NYSE Liffe in London.
Wet weather is set to return to growing regions in Brazil in the second half of August, Somar’s Oliveira said. Rainfall may be as much as double the historical average, he said.
“Next month’s forecasts for above average rainfall could slow things down again, bringing some bullishness back in August,” Kona Haque, an analyst at Macquarie Group Ltd. in London said in a report e-mailed today. She forecast raw sugar prices at 22 cents to 25 cents in three to six months.
Arabica coffee for September delivery was up 1 percent to $1.7585 a pound on ICE Futures. Robusta coffee for September delivery advanced 2 percent to $2,253 a ton on NYSE Liffe. The price touched $2,257 a ton, the highest since May 29.
Robusta coffee inventories with valid certificates in warehouses monitored by the NYSE Liffe exchange in London were 149,980 metric tons as of July 23, down 4.9 percent from two weeks earlier, according to exchange data.
Cocoa for September was little changed at $2,317 a ton in New York. Cocoa for December delivery rose 0.2 percent to 1,570 pounds ($2,468) a ton in London.
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.