Raw Sugar Rises on Signs Brazil Shifts to EthanolYi Tian and Isis Almeida
Raw-sugar futures rose the most in a week on signs that processors in Brazil, the world’s biggest producer, will make more ethanol instead of sweetener from cane. Cocoa and coffee fell, while cotton and orange juice gained.
Marex Spectron Group estimated that the share of Brazilian cane used in refined sugar in the 12 months starting in April may be as low as 44 percent. This season, the amount was almost 50 percent, data from Unica, an industry group, showed. The nation plans to reduce taxes on ethanol to boost production and use of the biofuel, Valor Economico reported last week.
“The bulls are talking up the relevance of the recent increase in gasoline prices in Brazil,” Thomas Kujawa, the co-head of soft commodities at Sucden Financial Ltd., a futures and options broker in London, said in a report.
Raw sugar for Mach delivery increased 1.7 percent to settle at 18.44 cents a pound at 1:41 p.m. on ICE Futures U.S. in New York, the biggest gain for a most-active contract since Jan. 30.
Cocoa futures for delivery in May declined 2.5 percent to $2,172 a metric ton in New York, the largest loss for a most-active contract since Jan. 22.
Arabica-coffee futures for March delivery fell 0.6 percent to $1.4015 a pound on ICE. Trading volume at this time was more than double the average in the past 100 days.
Also in New York, cotton futures for March delivery rose 0.3 percent to 82.92 cents a pound.
Orange-juice futures for March delivery climbed 0.7 percent to $1.214 a pound on ICE.