Sugar Futures Rise to Six-Month High on Brazil OutlookLuzi Ann Javier and Isis Almeida
Sugar futures rose to a six-month high on signs of lower production in Brazil, the world’s biggest producer. Cotton and coffee gained, while cocoa and orange juice fell.
Output of sugar in Brazil’s Center South will be 34.2 million metric tons in the 12 months that started April 1, down 3.7 percent from an estimate six months ago amid adverse weather, Unica, an industry group, said yesterday. Production may drop more should rainy weather persist, the Sao Paulo-based association said.
“These bullish numbers, together with an improved technical picture, are propelling the futures market,” Nick Penney, a senior trader at Sucden Financial Ltd. in London, said in a report.
Raw sugar for March delivery gained 1 percent to settle at 18.51 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 18.56 cents, the highest for a most-active contract since March 18.
Cotton futures for December delivery rose 0.3 percent to 86.87 cents a pound.
Arabica-coffee futures for December delivery advanced 0.3 percent to $1.1445 a pound.
Cocoa futures for December delivery fell 0.1 percent to $2,632 a ton.
Orange-juice futures for November delivery dropped 0.4 percent to $1.2745 a pound.