Sugar Drops to Five-Week Low on Producer Selling; Coffee Rallies
Sugar fell to a five-week low on speculation that Brazil and India, the largest growers, will increase sales as their currencies weakened against the dollar. Coffee and orange juice gained, while cocoa and cotton declined.
The real fell 2.2 percent against the dollar through yesterday this month, while the rupee lost 1.5 percent. About 921,093 metric tons of sugar are waiting to be loaded for export at ports in Brazil, up from 773,591 tons a week earlier, Williams Servicos Maritimos Ltda. said yesterday in an e-mailed report. The commodity is headed to China, Malaysia, Africa and other countries.
“The recent weakness in the Brazilian real and the rupee will continue to encourage producer selling,” Jeff Dobrydney, a vice president at Jenkins Sugar Group in Wilton, Connecticut, said in a telephone interview.
Raw sugar for March delivery lost 0.3 percent to settle at 18.04 cents a pound at 1:49 p.m. on ICE Futures U.S. in New York, after touching 17.93 cents, the lowest for a most-active contract since Sept. 30. The price may fall to 17 cents, Dobrydney said, without providing a time frame.
Arabica-coffee futures for December delivery rebounded 2.4 percent to $1.0395 a pound, after touching $1.0095, the lowest for a most-active contract since October 2006. Orange-juice futures for January delivery added 0.1 percent to $1.249 a pound on ICE.
Cocoa futures for March delivery slipped 1.8 percent to $2,693 a ton. Cotton futures for December delivery declined 0.4 percent to 76.76 cents a pound in New York.
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