Sugar futures rose to the highest price in almost eight months in New York on concern that adverse weather will limit supplies from Brazil, the world’s largest producer. Cocoa prices advanced and coffee fell.
Brazil’s sugar-cane harvest will be 3.2 percent smaller than previously estimated, the U.S. Department of Agriculture’s attache in Sao Paulo said last week. A four-month drought damaged crops in the country’s biggest producing region, the South Central area. Before today, the sweetener jumped 17 percent in 12 months.
“There is a little more demand than supply on sugar,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. There is a “bullish sentiment” in the market, he said.
Raw sugar for March delivery climbed 0.55 cent, or 2.1 percent, to 26.87 cents a pound at 10:37 a.m. on ICE Futures U.S. in New York, after reaching 27.24 cents, the highest level since Feb. 12.
Raw sugar may test 60 cents a pound in the next year, Tintle said.
In London, refined sugar futures for December delivery gained $7.80, or 1.2 percent, to $685.40 a metric ton on NYSE Liffe. Earlier, the most-active contract touched $696.90, the highest price since Feb. 22.
Cocoa futures for December delivery rose $48, or 1.7 percent, to $2,851 a ton in New York. In London, cocoa futures for December delivery gained 26 pounds, or 1.4 percent, to 1,896 pounds ($3,018) a ton.
Arabica coffee futures for December delivery declined 3.95 cents, or 2.2 percent, to $1.782 a pound in New York. Robusta coffee futures for January delivery fell $22, or 1.3 percent to $1,633 a ton in London.
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