Raw-Sugar Futures Decline to Two-Week Low as Brazil's Output Increases
Raw-sugar futures fell to the lowest level in two weeks, reversing earlier gains, on concern that rising output by Brazil, the world’s top producer, will erase a global deficit.
Output in Brazil’s Center South, the world’s biggest- producing region, grew 26 percent in the first half of July, according to Unica, an industry association said. The most- active contract fell 6.8 percent last week after advancing to a four-month high.
“The profit-taking continues,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “The long-term fundamentals are bearish.”
Raw sugar for October delivery declined 0.5 cent, or 2.7 percent, to 17.74 cents a pound at 1:10 p.m. on ICE Futures U.S. in New York, after dropping to 17.6 cents, the lowest level since July 22. Earlier, the price rose 2.5 percent.
Refined-sugar futures for October delivery slumped $15.70, or 2.9 percent, to $524.10 a metric ton in London on the Liffe exchange, declining for the third straight session.
To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net
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