Sugar retreated from a 12-week high in New York on speculation that bumper crops in Brazil and India, the world’s largest producers, will ease tight supplies.
Output in Brazil’s Center South region rose 31 percent in the first half of June, according to Unica, an industry group. India may export at least 1 million metric tons in the year starting Oct. 1, as domestic production jumps 34 percent, said Shree Renuka Sugars Ltd., the country’s biggest refiner.
“The elephant has not left the room in the sense that the potential amount of sugar to be available” is “still considerable,” Thomas Kujawa, a co-head of the soft-commodities department at Sucden Financial Ltd. in London, said today in a report.
Raw sugar for October delivery dropped 0.48 cent, or 2.8 percent, to 16.61 cents a pound on ICE Futures U.S. in New York, the biggest loss for a most-active contract since June 29. Earlier, the price reached 17.41 cents, the highest level since April 16.
Raw sugar has slumped 38 percent this year on forecasts for higher output in Brazil and India. The sweetener was down 0.5 percent for the week.
On the Liffe exchange in London, refined-sugar futures for October delivery fell $7.60, or 1.5 percent, to $515.40 a metric ton, trimming the weekly gain to 4.8 percent.