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Sugar Falls on Supply; Coffee Declines; Cocoa, Cotton Advance

Dec. 21 (Bloomberg) -- Sugar fell for the first time in four sessions on speculation that supplies will climb as harvesting accelerates in the Northern Hemisphere. Coffee declined, while cocoa and cotton climbed. Orange juice slid.

Global sugar supplies will exceed demand by 11.1 million metric tons in the season that started Oct. 1, up 13 percent from a September estimate, Sucden, the trading arm of Sucres et Denrees SA, said today. Thailand, Russia and the European Union will have record crops, the Paris-based company said.

“Importing countries are also relying on increased domestic production, resulting in a lack of demand on world export markets,” Emmanuel Jayet, a Sucden analyst, said in the report. “The nearly completed record crop in Russia, once the biggest importer of raw sugar, is heralding these changing fundamentals.”

Raw sugar for March delivery fell 0.7 percent to settle at 23.32 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The price, up 3.3 percent in the previous three sessions, has dropped 27 percent in 2011 as demand eased and production increased.

Arabica-coffee futures for March delivery dropped 1.3 percent to $2.199 a pound on ICE.

Cocoa futures for March delivery climbed 2.7 percent to $2,244 a ton in New York. Earlier, the price reached $2,247, the highest for a most-active contract since Dec. 14.

Cocoa Exports

Monthly exports from Ghana, the world’s second-biggest grower, fell by almost a third since the season started in October as shipping companies including Safmarine Container Lines NV and A.P. Moller-Maersk S/A halted transportation following a dispute on a port fee.

“Delays in Ghana are working to give cocoa a perk up,” Sterling Smith, an analyst at Country Hedging in St. Paul, Minnesota, said in an telephone interview. “There’s a little bit of end-user coverage as these levels look pretty good.”

Ivory Coast is the top exporter.

Cotton futures for March delivery climbed less than 0.1 percent to 86.85 cents a pound on ICE. Orange-juice futures for March delivery dropped 0.8 percent to $1.632 a pound.

In London futures trading, cocoa gained, while refined sugar and robusta coffee declined.

To contact the reporters on this story: Isis Almeida in London at ialmeida3@bloomberg.net; Marvin G. Perez in New York at mperez71@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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