June 11 (Bloomberg) -- Sugar futures rose to a three-week high as rains delayed harvesting and shipments in Brazil, the world’s largest producer and exporter. Cocoa and coffee dropped.
About 1 million metric tons of sugar wasn’t produced because of rains over the past week, according to SA Commodities, a Santos, Brazil-based consultancy. Supplies may fall short of demand by as much as 2 million tons this quarter, SA commodities said in a report.
“A week of rain has returned to Center South Brazil, delaying harvesting and probably reducing industrial yields,” Paul Bannister, the head of the sugar brokerage at Marex Spectron Group in London, said in a report.
Raw sugar for July delivery rose 2.5 percent to settle at 20.47 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 20.51 cents, the highest for most-active contract since May 21.
“Brazil tends to deliver a good amount of sugar against July, and the contract gains indicate there’s concern about availability,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview. “Ideas about new demand” also boosted prices, he said.
Cocoa futures for September delivery declined 0.3 percent to $2,178 a ton. Earlier, the price reached $2,230, the highest since May 22.
Arabica-coffee futures for September delivery fell 0.4 percent to $1.567 a pound.
In futures trading on London’s NYSE Liffe, refined sugar advanced, while cocoa and robusta coffee fell.
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