Sugar Futures Fall in New York on Bets India Supply to Climb; Cocoa Drops
Sugar prices declined the most in more than a week on speculation that rising output in India, the world’s second-largest producer, will ease global supply constraints. Cocoa also retreated.
India’s sugar-cane crop will probably be bigger than forecast two months ago, Sergey Gudoshnikov, an economist at the London-based International Sugar Organization, said today. The nation may produce 26 million metric tons of the sweetener, up from an estimate of 25 million tons, he said.
“Sugar coming from India will ease the pressure for now,” said Ricardo Scaff, a trader at Rabobank International in New York.
Raw sugar for March delivery declined 0.54 cent, or 1.9 percent, to settle at 27.96 cents a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest drop since Oct. 15.
The price has still more than doubled after touching a 13- month low on May 7 as adverse weather threatened production in Brazil, Russia and China.
In London, refined-sugar futures for December delivery fell $8.90, or 1.2 percent, to $708.30 a ton on NYSE Liffe.
Cocoa futures for December delivery lost $41, or 1.4 percent, to $2,889 a ton in New York.
In London, cocoa futures for December delivery dropped 43 pounds, or 2.2 percent, to 1,920 pounds ($3,042) a ton.
Orange-juice futures for January delivery declined 0.1 cent, or 0.1 percent, to $1.4935 a pound on ICE.
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