Raw Sugar Declines as Traders Assess Santos Fire; Cocoa Retreats

Sugar declined a second day in New York, after rising to the highest level in almost a year on Oct. 18, as traders assessed the consequence of a fire at Brazil’s main port. Cocoa fell on Ivorian bean arrivals.

A fire that broke out at Copersucar SA’s terminal in Santos on Oct. 18 left six warehouses “totally compromised” and destroyed 180,000 metric tons of the sweetener, according to the Sao Paulo-based company. Sugar waiting to be loaded onto ships at Brazil’s main ports totaled 1.03 million tons yesterday, less than the 1.295 million tons expected a year earlier, data from Santos-based SA Commodities on Bloomberg showed.

“Vessel line-ups are below previous seasons, and physical flows should be able to handle this disruption,” Kona Haque, a London-based analyst at Macquarie Group Ltd., said in a report e-mailed today, referring to the fire. There may be “some delays in sugar port logistics over the next few weeks.”

Raw sugar for delivery in March declined 0.5 percent to 19.32 cents a pound by 5:55 a.m. on ICE Futures U.S. in New York. Prices fell 0.4 percent yesterday. Refined, or white, sugar for December delivery was little changed at $512.10 a ton on NYSE Liffe in London.

Futures rallied as much as 6.1 percent to 20.16 cents a pound on Oct. 18, the highest in almost a year, as traders and some speculators sought to close out bets on lower prices on news of the fire, according to Lausanne, Switzerland-based researcher Kingsman SA. Sugar is this month’s best performer in the Standard & Poor’s GSCI gauge of 24 raw materials.

Rebuilding Operations

Rebuilding Copersucar’s operations may take eight to 12 months, Arnaldo Luiz Correa, a director at Archer Consulting in Sao Paulo, said in an Oct. 19 report. Millers may have to make more ethanol next year if sugar can’t be exported, according to futures and options broker Marex Spectron Group in London.

Cocoa for delivery in December lost 0.3 percent to $2,721 a ton in New York. In London, beans for delivery in the same month were little changed at 1,734 pounds ($2,798) a ton.

Bean deliveries to ports in Ivory Coast, the world’s leading producer, more than doubled Oct. 1-20, according to data on the website of KnowledgeCharts, a unit of Commodities Risk Analysis in Bethlehem, Pennsylvania. Arrivals were 106,000 metric tons compared with 47,000 tons a year earlier.

Arabica coffee for delivery in December was little changed at $1.1275 a pound on ICE. Robusta for delivery in January fell 0.4 percent to $1,578 a ton on NYSE Liffe.

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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