Sugar slid on a report that a global surplus will be larger than expected, partly because of more production in Brazil, the world’s largest grower. Cotton also dropped, while coffee, cocoa and orange juice advanced.
The global surplus for the 12 months started Oct. 1 will be 38 percent larger than estimated in November, the International Sugar Organization said today. Brazilian millers will produce 40.3 million tons of the sweetener, compared with 35.2 million a year earlier, according to the report. Prices in New York dropped to 17.67 cents a pound on Feb. 15, the lowest since August 2010.
“Anytime you see talk about bigger world supplies it reminds everyone why it got to 18 cents in the first place,” Jack Scoville, vice president at Chicago-based Price Futures Group Inc. said in a telephone interview. “There’s some reactionary sell-out.”
Raw-sugar futures for delivery in May dropped 1.3 percent to settle at 17.9 cents at 2:00 p.m. on ICE Futures U.S. in New York. Prices are down 8.3 percent this year.
Also on ICE, cotton futures for May delivery slumped 1.5 percent to 83.23 cents a pound, the first loss in a week.
Arabica-coffee futures for May delivery gained 0.1 percent to $1.4175 a pound in New York.
Also on ICE, cocoa futures for delivery in May advanced 0.9 percent to $2,133 a metric ton, the first increase since Feb. 7. Orange-juice futures for delivery in May added 1.9 percent to $1.289 a pound, the biggest gain since Feb. 12.