Sugar Declines in New York as Brazilian Crop Outlook Improves
Sugar prices in New York fell for the third straight day on prospects for higher output in Brazil, the world’s biggest exporter.
The country’s Center South, the main growing region, may produce 135.5 kilograms of sugar per metric ton of cane, up from a forecast of 134.5 kilograms, Caio Carvalho, a director at Canaplan, a consulting company, said today in the city of Guaruja. Earlier, futures rose as much as 2.1 percent on speculation that European policy makers are moving closer to resolving debt woes.
“Seeing higher yields and larger supply will quell buying interest,” Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota, said in a telephone interview. “That’s pushing buyers to the sidelines.”
Raw sugar for March delivery fell 0.9 percent to 26.55 cents a pound at 12:15 p.m. on ICE Futures U.S. in New York. Before today, the price dropped 26 percent from a 30-year high of 36.08 on Feb. 2.
Traders and analysts are the most bearish in almost three months on mounting speculation that supplies will outpace demand for the first time in four years, a Bloomberg survey showed.
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