Raw-sugar futures fell on renewed concern that global production will exceed consumption. Cocoa and orange juice also dropped.
The International Sugar Organization has said that supplies will outpace demand by 5.85 million metric tons in the 12 months starting Oct. 1, following a 5.2 million surplus a year earlier. Yesterday, prices reached an eight-week high, partly on demand for refined sweetener.
“The surplus is rearing its head a little bit more aggressively,” Jeff Dobrydney, a vice president at Wilton, Connecticut-based Jenkins Sugar Group, said in a telephone interview. “Any rally is going to be tempered by producer selling.”
Raw sugar for March delivery dropped 0.3 percent to close at 21.54 cents a pound at 1:52 p.m. on ICE Futures U.S. in New York. Yesterday, the commodity reached 21.77 cents, the highest for a most-active contract since Aug. 8. This week, the price gained 5.5 percent.
Cocoa futures for December delivery slid 0.5 percent to $2,382 a ton in New York. The price tumbled 5.3 percent this week.
Orange-juice futures for November delivery dropped 0.3 percent to $1.151 a pound. The price gained 1.7 percent this week.