Sugar Falls as Brazil Area’s Output May Be Record; Cocoa Drops
Sugar fell in London and New York on speculation the crop in Brazil’s center south, the main growing region of the world’s biggest producer, will climb to record levels this year and the next. Cocoa retreated.
Sugar production in the region may reach 34 million metric tons in the 2012-13 season that started in April, “substantially above the previous record of 33.3 million tons produced in 2010-11,” Paris-based Sucres et Denrees SA said in a quarterly report e-mailed yesterday. Output may amount to as much as 36.8 million tons in 2013-14, estimates the trader, which ships more than 8 million tons of sugar a year.
“The sugar price is unlikely to make any great leaps upward,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, wrote in an e-mailed report, adding that production in the center south could reach 34 million tons this year. “The prospects are also rosy for next season.”
White, or refined, sugar for March delivery slid 0.1 percent at $520.30 a ton by 10:41 a.m. on NYSE Liffe in London. Raw sugar for March delivery fell 0.2 percent to 19.38 cents a pound on ICE Futures U.S. in New York.
Sugar has fallen 14 percent in London and 17 percent in New York this year as supplies are set to outpace demand for a third year. The global sugar surplus will be 8.95 million tons in 2012-13, 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.
Cocoa for March delivery fell 0.5 percent to 1,524 pounds ($2,472) a ton on NYSE Liffe, still up 10 percent this year. Cocoa for March delivery was down 0.5 percent to $2,414 a ton on ICE. It gained 14 percent this year.
Robusta coffee for March delivery advanced 1.1 percent to $1,862 a ton in London, still 2.9 percent higher this year. Arabica coffee for March delivery was down 0.2 percent to $1.456 a pound in New York. It’s fallen 36 percent this year.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.