Sugar Declines in New York on Indications of Ample Supply
Sugar fell to a four-week low on signs of increasing production in Brazil, the world’s biggest grower. Cocoa rose, while orange juice dropped.
Sugar-cane output in Brazil’s center south, the main growing region, may climb to 538 million metric tons next season, compared with 512 million tons in the previous year, Jonathan Kingsman, the founder of Kingsman SA, said today at a conference in London. In an interview, Kingsman said he may revise his forecasts next week, with production in the 2013-2014 crop year as large as 575 million tons.
Traders “worry about prices as everyone anticipates a larger Brazilian crop,” Michael McDougall, the head of the Brazil desk at Newedge Group in New York, said in an e-mailed report today. “Other countries appear to be producing large crops, even though prices have slid.”
Raw-sugar for March delivery declined 1.6 percent to close at 19.79 cents a pound at 2 p.m. on ICE Futures U.S. in New York, after touching 19.67 cents, the lowest since Sept. 19.
Global supplies will outpace consumption by 6 million tons this year, according to Julio Borges, the director of JOB Economia & Planejamento, a researcher.
Effective Nov. 5, the daily trading session for sugar futures and options contracts will be reduced by an hour, with trading starting at 2:30 a.m. New York time instead of 1:30 a.m., ICE said today in a statement. No changes were made to settlement hours.
Cocoa futures for December delivery gained 2.2 percent to $2,438 a ton in New York.
Also on ICE, orange-juice futures for January delivery declined 2 percent at $1.1425 a pound.
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