Sugar Rises in New York on Speculation India Will Keep Exports From Market
Sugar prices jumped to an 11-week high on speculation that demand will increase in Indonesia and China, the world’s second-biggest consumer.
Wilmar International Ltd., which this week agreed to buy Australia’s biggest sugar refiner, said demand in Asian countries exceeds annual supply by 30 percent. India, the top user, probably won’t export any supplies soon to the global market because domestic inventories are low, said Sudakshina Unnikrishnan, an analyst at Barclays Capital in London.
“Pent-up demand and weather issues are providing some support,” Michael McDougal, a senior vice president at brokerage Newedge USA in New York, said in a report.
Raw sugar for October delivery rose 0.37 cent, or 2.2 percent, to 17.06 cents a pound on ICE Futures U.S. Earlier, the price reached 17.15 cents, the highest level for a most-active contract since April 20.
Sugar may climb as high as 19.65 cents, McDougal said. That would mark the highest level since March 15.
Futures have slumped 37 percent this year on forecasts for higher output in Brazil and India, the biggest producers.
On London’s Liffe exchange, refined-sugar futures for October delivery rose $9.60, or 1.9 percent, to $511.90 a metric ton.
To contact the reporters on this story: Yi Tian in New York at ytian8@bloomberg.net. M. Shankar in London at mshankar@bloomberg.net
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