Sugar Rises on Brazil Cane-Crop Concerns; Coffee, Cotton AdvanceMarvin G. Perez
Sugar rose to highest in a week on concern that freezing temperatures may threaten crops in growing areas of Brazil, the world’s top producer and exporter. Coffee, cotton, cocoa and orange juice also gained.
A cold front may push temperatures to between zero and 2 degrees Celsius (36 degrees Fahrenheit) from Aug. 27 to Aug. 28 in the center of Mato Grosso do Sul, the southern most areas of Sao Paulo and parts of Parana, according to Marcio Custodio, the forecast operating-director at Sao Paulo-based Somar Meteorologia. Sugar prices are down 15 percent this year on signs of ample supplies.
“The cold weather in Brazil is lending a bit of support to sugar,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a telephone interview. Prices were also boosted as the real rebounded from a four-year low, reducing incentives for exporters to sell commodities priced in the greenback, he said.
Raw sugar for October delivery advanced 0.9 percent to settle at 16.61 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price touched 16.67 cents, the highest for a most-active contract since Aug. 19.
Also in New York, arabica-coffee futures for December delivery increased 0.6 percent to $1.1775 a pound, the first advance since Aug. 14.
Cotton futures for December delivery jumped 1 percent to 84.9 cents a pound, the first gain since Aug. 16. The fiber is up 13 percent this year.
Cocoa futures for December delivery climbed 0.6 percent to $2,481 a metric ton. Orange-juice futures for November delivery added 1.1 percent to $1.3705 a pound.
London’s NYSE Liffe is closed today for a public holiday.