Bloomberg News

Sugar Falls a 2nd Day as Surplus Weighs; Coffee Declines

January 15, 2013

Cocoa futures fell for the second time in three sessions on signs that global demand is ebbing. Sugar and orange juice also slid, while coffee and cotton advanced.

European cocoa-bean processing fell 6.2 percent in the fourth quarter, bringing the 2012 total to a seven-year low, according to the European Cocoa Association. Grinding in North America fell 4.4 percent on increasing inventories amid a faltering economy, according to the average of 10 analysts in a Bloomberg survey.

“The European grind was very bad, so the attitude will be bearish either way” for prices, Jack Scoville, a vice president for Price Futures Group, said in an e-mail from Chicago.

Cocoa for March delivery fell 0.7 percent to $2,252 a metric ton at 11:09 a.m. on ICE Futures U.S. in New York. The price is down 0.7 percent since Jan. 10.

The Washington-based National Confectioners Association will release its North American processing data on Jan. 17.

Also in New York, raw-sugar futures for March delivery retreated 0.4 percent to 18.82 cents a pound.

Orange-juice futures for March delivery fell 0.5 percent to $1.109 a pound on ICE.

Arabica-coffee futures for March delivery climbed 0.8 percent to $1.5465 a pound in New York, after touching $1.565, the highest for a most-active contract since Nov. 29.

Cotton futures for March delivery gained 0.5 percent to 75.88 cents a pound on ICE.

To contact the reporters on this story: Marvin G. Perez in New York at mperez71@bloomberg.net; Oliver Renick in Chicago at orenick1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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