Sugar futures fell the most in a week as Goldman Sachs Group Inc. cut its price forecast amid ample global supplies. Orange juice, cotton and coffee also dropped, while cocoa rose.
Raw sugar in New York will be at 18.5 cents a pound in three and six months, down from an earlier estimate of 22 cents, Damien Courvalin, an analyst at New York-based Goldman, said in a report dated yesterday. Output in Brazil, the world’s biggest producer, will keep expanding, he said.
“We expect the global sugar market to remain in a surplus for the third consecutive year,” Courvalin said. “We expect a further build in global inventories.”
Raw sugar for March delivery dropped 1.4 percent to settle at 18.9 cents a pound at 1:41 p.m. on ICE Futures U.S. in New York, the biggest decline for a most-active contract since Jan. 3. In 2012, the commodity fell 16 percent, the second straight decline.
“The phrase ‘global supply glut’ seems to have appeared more than once” in reports on sugar, driving prices lower, Thomas Kujawa, the co-head of soft commodities at Sucden Financial Ltd., a futures and options broker in London, said in a report.
Orange-juice futures for March delivery declined 1.2 percent to $1.115 a pound.
Cotton futures for March delivery fell 0.1 percent to 75.52 cents a pound.
Arabica-coffee futures for March delivery lost less than 0.1 percent to $1.533 a pound.
Cocoa futures for March delivery rose 0.5 percent to $2,267 a metric ton in New York.