Sugar Futures Rise to Highest in Six Weeks on BrazilLuzi Ann Javier and Marvin G. Perez
Sugar rose to the highest in six weeks after cold weather curtailed output in Brazil, the world’s biggest producer. Coffee and cocoa gained while orange juice fell.
In the second half of July, output in Brazil’s Center South, the top sugar-growing region, fell 15 percent to 2.53 million metric tons from a year earlier amid freezing temperatures, Unica, an industry group, said on Aug. 9. The domestic price rose to a premium of 0.05 cent a pound to futures, Sao Paulo-based Archer Consulting said.
“People are turning bullish on stronger cash values, after the rain delays in June and July and after frost hit some cane areas,” James Cassidy, the head of the sugar trading desk at Newedge Group in New York, said by telephone.
Raw sugar for delivery in October advanced 1.1 percent to settle at 17.16 cents a pound at 2 p.m. on ICE Futures U.S. in New York after reaching 17.23 cents, the highest since June 27.
Arabica-coffee futures for delivery in December gained 0.4 percent to $1.261 a pound on ICE. Cocoa futures for December delivery rose 0.8 percent to $2,499 a ton.
Orange-juice futures for September delivery lost 2.6 percent to $1.3075 a pound in New York, the fifth straight decline, and the longest slump since June 26.