Sugar Falls on Outlook for Surplus; Orange Juice Tumbles

Sugar fell, halting the longest rally in a month, as rising global supplies outpaced demand. Orange juice and cotton slid, while coffee and cocoa rose.

More sugar exports from Thailand, the world’s second-biggest shipper, are expected because mills are behind with sales, Tom McNeill, a director at Green Pool Commodity Specialists Pty in Brisbane, Australia, said in a telephone interview. Global supplies will outpace consumption by 11 million metric tons this year, Paris-based Sucres et Denrees SA said last week.

“Surpluses look very large,” Shawn Hackett, the president of Hackett Financial Advisors in Boynton Beach, Florida, said today in a report. While prices are “finally coming down to more value-oriented levels, it is still hard for me to see a clear cut bullish argument at this time,” he said.

Raw sugar for July delivery fell 0.5 percent to settle at 17.79 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The price climbed in the previous three days, the longest rally since March 7. The commodity has dropped 23 percent in the past 12 months. Brazil is the top producer and exporter.

Orange-juice futures for May delivery tumbled 2.4 percent to $1.4295 a pound, the biggest drop for a most-active contract since March 20. Yesterday, the price reached a one-year high.

Most Florida growing areas will get rain this weekend and April 21 to April 25, Commodity Weather Group LLC in Bethesda, Maryland, said. Yesterday, the U.S. Department of Agriculture cut its estimate for the state’s orange output following a drought. The reduction matched forecasts by analysts.

“The combination of rain in Florida, the neutral USDA report and profit-taking” pushed prices lower, Fain Shaffer, the president of Medford, Oregon-based Infinity Trading Corp. said in an e-mail.

Brazil is the biggest orange grower, followed by Florida.

Cotton futures for July delivery declined 0.8 percent to 86.74 cents a pound. Arabica-coffee futures for July delivery rose 0.6 percent to $1.3915 a pound. Cocoa futures for July delivery gained 0.6 percent to $2,245 a ton.

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