Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sugar, Coffee, Cocoa Advance After Fed Maintains Stimulus

Don't Miss Out —
Follow us on:

Sept. 19 (Bloomberg) -- Sugar, coffee and cocoa futures rose on speculation that the Federal Reserve’s decision to maintain U.S. fiscal stimulus will spur commodity demand. Orange juice and cotton declined.

Policy makers want to see more evidence that improvement in the economy will be sustained before adjusting the Fed’s $85 billion in monthly debt purchases, the central bank said yesterday. Today, the Standard & Poor’s GSCI Spot Index of 24 raw materials reached a one-week high before erasing gains.

The Fed decision “puts all markets squarely back in risk-taking mode,” Paul Christopher, the chief investment strategist at Wells Fargo Advisors LLC in St. Louis, which oversees $1.3 trillion, said in an e-mail. The latest step “should boost the U.S. economy” and demand for most raw materials, he said.

Raw sugar for March delivery jumped 1.5 percent to settle at 17.74 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 17.8 cents, the highest for a most-active contract since May 7.

Yesterday, the GSCI jumped the most in three weeks following the Fed statement.

Rain this week and next will probably halt fieldwork and may cut the amount of sugar cane processed in the second half of September in Brazil’s Center South, the main growing region, Sao Paulo-based Somar Meteorologia said yesterday.

Arabica-coffee futures for December delivery gained 0.8 percent to $1.158 a pound. Yesterday, the price touched $1.1395, the lowest since July 13, 2009.

Cocoa futures for December delivery rose 0.3 percent to $2,630 a metric ton. Earlier, the price reached $2,657, the highest since Sept. 14, 2012.

Orange-juice futures for November delivery dropped 1.1 percent to $1.2535 a pound. The price touched $1.251, the lowest since June 26.

Cotton futures for December delivery fell 1 percent to 84.72 cents a pound. Earlier, the price reached 85.78 cents, the highest since Aug. 21.

To contact the reporters on this story: Isis Almeida in London at ialmeida3@bloomberg.net; Marvin G. Perez in New York at mperez71@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.