Sugar rose in London on speculation that excess rain will reduce output in Brazil, the world’s largest producer. Cocoa fell, erasing earlier gains.
Sugar-cane producing areas in Brazil will have rain this week, after irregular precipitation in the previous 10 days helped speed up the harvest, weather consultant Somar Meteorologia said Nov. 20. Moisture in Center South, the main growing area, by the weekend may affect fieldwork and harvesting, Somar said Nov. 19.
“There’s about a month left in the crushing season, but there are some rains maybe cutting that short and forcing mills to leave cane in the field,” Keith Flury, an analyst at Rabobank International in London, said by phone today.
White, or refined, sugar for delivery in March rose 0.8 percent to settle at $522.40 a metric ton on NYSE Liffe in London. ICE Futures U.S. in New York, where investors trade raw sugar, cocoa and arabica coffee, is closed today for the Thanksgiving holiday.
Cocoa for delivery in March fell 0.8 percent to 1,573 pounds ($2,506) a ton in London. Prices earlier rose as much as 0.7 percent on signs of increasing demand from processors.
Cargill Inc. is ramping up cocoa processing after a slowdown earlier this year, Jos de Loor, president of the company’s cocoa and chocolate unit, said in an interview yesterday. Global grindings will rise 2.5 percent to 3.5 percent in the 2012-13 season begun last month, he said. Bean demand will outpace supply by about 50,000 metric tons in the period, according to the International Cocoa Organization.
Robusta coffee for delivery in January advanced 0.6 percent to $1,873 a ton after declining 2.2 percent in the previous four sessions.