Dec. 18 (Bloomberg) -- Sugar fell on speculation that production in Brazil’s Center South, the main growing region of the world’s top producer, will reach a record this year and next. Coffee and cocoa also slid, while cotton gained.
Center South sugar output may reach 34 million metric tons in the 2012-2013 season that started in April, “substantially above the previous record of 33.3 million tons produced in 2010-2011,” Paris-based Sucres et Denrees SA said in a quarterly report e-mailed yesterday. Production may be as much as 36.8 million tons in 2013-2014, according to the trader, which ships more than 8 million tons of sweetener a year.
“There seems to be continued good crop expectations for the major producers,” London-based broker Sucden Financial Ltd. said in an e-mailed report today. “We still feel the market is bearish in the medium term.”
Raw sugar for March delivery dropped 0.1 percent to settle at 19.39 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The commodity has fallen 17 percent this year.
The global surplus will be 8.95 million tons in 2012-2013, up from 7.1 million tons a year earlier, Brisbane, Australia-based researcher Green Pool Commodity Specialists Pty. estimated in a report e-mailed today.
Also in New York, arabica-coffee futures for March delivery tumbled 1.3 percent to $1.44 a pound. This year, the price is down 37 percent, the most among the 24 raw materials tracked by the Standard & Poor’s GSCI Spot Index.
Coffee exports from Latin America rose 19 percent in November from a year earlier, Guatemala’s National Coffee Association, known as Anacafe, said today.
Cocoa futures for March delivery retreated 1.2 percent to $2,397 a ton on ICE. The price has jumped 14 percent in 2012.
Cotton futures for March delivery advanced 0.1 percent to 75.95 cents a pound on ICE. This year, the fiber has slumped 17 percent.
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