Sugar Falls for Third Day on Brazil Output; Orange Juice Drops
Sugar futures fell for the third straight day on concern that higher production in Brazil, the world’s largest supplier, will add to a global surplus. Orange juice, cocoa and cotton dropped, while coffee rose.
Output of sugar in Brazil’s Center South, the nation’s biggest producing region, will be 34.05 million metric tons for the year that started April 1, up 4.1 percent from a Sept. 20 estimate, industry group Unica said today. The cane crop may climb 9 percent next year, the group said. Earlier this month, Kingsman SA, a research company, boosted its estimate for a global surplus by 26 percent. Through yesterday, prices have dropped 17 percent this year.
“The market has been pressured by the favorable crop out of Brazil,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in an e-mail. “We are definitely seeing prices down today due to the revised larger number.”
Raw sugar for March delivery slid 0.8 percent to 19.08 cents a pound at 10:32 a.m. on ICE Futures U.S. in New York. A third straight decline would be the longest slump since Dec. 10.
Orange-juice futures for January delivery tumbled 1.3 percent to $1.401 a pound on ICE, heading for the biggest drop since Nov. 28.
Also in New York, cotton futures for March delivery fell 0.8 percent to 75.26 cents a pound.
Cocoa futures for March delivery retreated 1.6 percent to $2,321 a ton.
Arabica-coffee futures for March delivery rose 0.3 percent to $1.4535 a pound on ICE.
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