Raw-Sugar Futures Rally as Brazil Production Plunges; Coffee, Cocoa Deline
Sugar gained, capping the biggest weekly gain since January, after output plunged in Brazil, the world’s biggest producer and exporter. Coffee and cocoa futures fell in New York.
From mid-March to the end of April, sugar output in Brazil’s Center South fell 69 percent to 795,000 metric tons from a year earlier, industry group Unica said yesterday.
“The numbers from Unica have raised supply concerns,” said Bruno Lima, a risk-management consultant at FCStone Group Inc. in Campinas, Brazil. “Prices will remain firm.”
Raw sugar for July delivery rose 0.12 cent, or 0.6 percent, to settle at 21.45 cents a pound at 2 p.m. on ICE Futures U.S. in New York. For the week, the price jumped 4.8 percent, paring this year’s decline to 33 percent.
In London, refined-sugar futures for August delivery climbed 70 cents, or 0.1 percent, to $602.80 a ton on NYSE Liffe.
Arabica-coffee futures for July delivery fell 5.55 cents, or 2 percent, to $2.694 a pound in New York, down 6.3 percent in five days, the biggest weekly slide since June 2009.
In London, robusta-coffee futures for July delivery gained $16, or 0.6 percent, to $2,527 a ton.
Cocoa futures for July delivery fell $35, or 1.2 percent, to $3,002 a ton. Cocoa also retreated in London.
To contact the reporters on this story: Isis Almeida in London at ialmeida3@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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