(Corrects spelling of cocoa in headline.)
Raw sugar rose for a sixth session, trading near a 29-year high, on concern that shipments will be limited from India, the world’s second-largest producer. Cocoa and coffee prices dropped, while orange juice gained.
The surplus available for overseas sales may be 2 million metric tons, 20 percent less than a September forecast, an Indian millers group said. Last year, India became the world’s biggest importer as adverse weather damaged crops. Stockpiles are about 4 million tons, compared with the nation’s preferred level of 10 million tons, according to Rabobank International. Sugar prices in New York have advanced 12 percent this year.
“The whole question is actually how much” sugar India will ship, said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “They’re not going to open up the floodgates and let it all come out at once.”
Raw sugar for March delivery rose 0.03 cent, or 0.1 percent, to settle at 30.15 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The price fluctuated today, falling as much as 1.8 percent to 29.58 cents. Yesterday, the sweetener reached 30.64 cents, the highest level since Jan. 15, 1981.
Shipments should be spread out in stages to prevent prices from slumping, the millers group said.
“India is looking at keeping these prices high, which is good for them,” Tintle said.
Brazil Supply Drops
Prices also climbed amid signs that production is declining in Brazil, the world’s largest grower.
Output in Brazil’s Center South, the country’s biggest producing-region, tumbled 30 percent in the first half of October from the same period a year earlier, industry association Unica said on Oct. 28.
In London, refined-sugar futures for March delivery rose $1.80, or 0.2 percent, to settle at $748.80 a metric ton at 5:30 p.m. local time on NYSE Liffe. Earlier, the commodity climbed to $756.60, the highest price for a most-active contract since Jan. 26.
Cocoa futures for December delivery fell $41, or 1.5 percent, to settle at $2,764 a ton in New York. In London, cocoa futures for December delivery dropped 43 pounds, or 2.3 percent, to settle at 1,827 pounds ($2,940) a ton.
Arabica-coffee futures for December delivery declined 3.25 cents, or 1.6 percent, to settle at $1.9615 a pound in New York. On NYSE Liffe, robusta-coffee futures for January delivery fell $7, or 0.4 percent, to settle at $1,932 a ton.
Orange-juice futures for January delivery gained 0.35 cent, or 0.2 percent, to settle at $1.6245 on ICE.
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