Cotton Falls on Signs China Demand Will Ebb; Sugar DropsMarvin G. Perez
Raw-sugar futures fell for a fourth straight session on speculation that rains will boost output in India, the world’s biggest producer after Brazil. Cocoa also slid, while cotton, coffee and orange juice rose.
The best start to the monsoon in at least 12 years in India may spur cane plantings, according to Shashanka Bhide, an economist at the New Delhi-based National Council of Applied Economic Research. Dry weather this week in Brazil’s Center South, the main growing region, will speed up harvesting, forecaster Somar Meteorologia said today.
“The Indian monsoon is off to a good start, and this should help with sugar-cane production,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a e-mailed report. “Traders in Brazil expect big production to continue as the weather is good.”
Raw sugar for October delivery fell 1.4 percent to settle at 16.69 cents a pound at 2 p.m. on ICE Futures U.S. in New York, capping the longest decline since June 4. Earlier, the price touched 16.58 cents, the lowest for a most-active contract since June 14.
Slumps by the Brazilian real against the dollar and the Indian rupee are spurring exports, according to Kingsman SA, a research company in Lausanne, Switzerland.
Cocoa futures for September delivery slid 0.2 percent to $2,159 a metric ton on ICE.
Also in New York, cotton futures for December delivery jumped 1.8 percent to 85.54 cents a pound, after touching 85.57 cents, the highest since June 20.
Arabica-coffee futures for September delivery rose 1 percent to $1.216 a pound.
Orange-juice futures for September delivery advanced 1.2 percent to $1.302 a pound, the third consecutive gain.