Sugar Drops Most in a Week on Global Surplus Concerns
Raw-sugar futures fell the most in a week as global production was forecast to exceed demand for the third straight year. Cocoa gained, while orange juice dropped.
The International Sugar Organization has said that supplies will outpace demand by 5.85 million metric tons in the 12 months starting Oct. 1, following a 5.2 million surplus a year earlier. Yesterday, prices reached an eight-week high, partly on demand for refined sweetener.
“The surplus is rearing its head a little bit more aggressively,” Jeff Dobrydney, a vice president at Wilton, Connecticut-based Jenkins Sugar Group, said in a telephone interview. “Any rally is going to be tempered by producer selling.”
Raw sugar for March delivery slumped 1.6 percent to 21.25 cents a pound at 10:26 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest drop for a most- active contract since Sept. 26. Yesterday, the commodity reached 21.77 cents, the highest since Aug. 8.
Cocoa futures for December delivery advanced 0.2 percent to $2,399 a ton in New York.
Orange-juice futures for November delivery gained 0.5 percent to $1.1495 a pound.
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