June 9 (Bloomberg) -- Raw sugar rose to the highest price in almost two weeks on speculation that supplies will ease from Brazil, the world’s biggest producer.
Wholesalers are building inventories before an anticipated increase in demand in India and the Middle East, said James Kirkup, the head of sugar brokerage at Fortis Bank Nederland in London. Sugar prices rose 3.8 percent yesterday on supply concerns.
“There is no question that Brazil got a running start” as processors worked through cane left over from last year, Kirkup said. “The focus has to be on the ongoing crush hitting targets.”
Raw sugar for July delivery jumped 0.28 cent, or 1.9 percent, to 15.16 cents a pound on ICE Futures U.S. in New York. Earlier, the price touched 15.41 cents, the highest level for a most-active contract since May 27.
Refined sugar for August delivery climbed $13.70, or 2.8 percent, to $500.90 a metric ton on the Liffe exchange in London.
Buyers are interested in 50,000 tons of raw sugar from Brazil, Fortis said in a report.
Raw sugar has tumbled 44 percent this year on forecasts for higher output in Brazil and India, the second-largest grower. Current prices may spur “much needed fresh physical demand,” the International Sugar Organization said in a report today.
India, which is also the largest consumer, will begin the crop year in October with a stockpile of 3 million tons. That may not be enough to meet rising demand, said Atul Chaturvedi, the president of Adani Enterprises Ltd., the country’s biggest non-state trader of farm goods.
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