Sugar Declines Amid Record Supplies; Coffee Drops; Cocoa Rises
Sugar fell to a two-week low on signs that world supplies will top demand as production climbs to a record. Coffee also declined, while cocoa gained.
Global sugar output will exceed demand by 4.2 million metric tons in the season starting in October, the International Sugar Organization said yesterday. World supply will climb to an all-time high of 172.4 million tons even as output drops in Brazil, the top global producer, the group said.
“Sugar has massive surpluses coming,” Shawn Hackett, the president of Hackett Financial Advisors Inc., said in a telephone interview from Boynton Beach, Florida. “It has a tough fundamental road to get over between now and the end of the year.”
Raw sugar for October delivery dropped 0.41 cent, or 1.4 percent, to settle at 29.18 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the commodity touched 28.85 cents, the lowest since Aug. 19. The sweetener dropped 3.4 percent this week, the biggest decline since Aug. 5.
Arabica-coffee futures for December delivery fell 1.7 cents, or 0.6 percent, to $2.8805 a pound on ICE. Before today, the commodity had risen for eight straight sessions, the longest rally since November 2004.
Cocoa futures for December delivery rose $23, or 0.7 percent, to $3,098 a ton in New York.
In London, refined sugar and robusta coffee slumped, while cocoa rose.
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