Raw-sugar prices rose for the second time in three days as an equity rally bolstered the outlook for commodity demand.
The Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 0.8 percent as European stocks and most Asian markets gained on earnings reports. This week, sugar prices reached 17.7 cents a pound, the highest level since April 15.
“It’s all demand driven,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “Companies are doing well. Demand for commodities is starting to pick up, and sugar is tying into that.”
Raw sugar for October delivery rose 0.19 cent, or 1.1 percent, to 17.47 cents on ICE Futures U.S. in New York. The price has climbed 34 percent from a 13-month low of 13 cents on May 7.
Sugar may reach 18.5 cents in the next two weeks, Tintle said. The most-active contract last reached that level on March 22.
The six main sugar ports in Brazil, the world’s largest producer, had a record 111 vessels delayed yesterday. That triggered “tightness” in supplies, said Nick Penney, a senior trader at Sucden Financial Ltd. in London.
The backlog rose from 103 ships a week ago.
In London, refined-sugar futures for October delivery gained $3.90, or 0.7 percent, to $542.20 a metric ton on the Liffe exchange.