Sugar Drops as Brazil Supply Concerns Ease; Coffee FallsLuzi Ann Javier
Sugar fell the most in a week on signs that supply disruptions will be less than expected from a fire at an export depot in Brazil, the world’s top producer. Coffee fell for an eighth session, the longest slump in 11 years. Cotton and cocoa declined, while orange juice gained.
Paulo Roberto de Souza, chief executive officer at Sao Paulo-based Copersucar SA, said this week that conveyor belts and other equipment escaped damage from the fire at the company’s sugar terminal on Oct. 18 at the Brazilian port of Santos. The blaze destroyed 180,000 metric tons of the sweetener.
“The developing consensus has been that suspended loading capacity would be largely rerouted” to nearby facilities, James Cassidy, the head of sugar trading at Newedge USA LLC in New York, said in a report.
Raw sugar for March delivery declined 1.6 percent to settle at 18.97 cents a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest drop since Oct. 15. Speculators may increase sales because the price closed below 19 cents, Cassidy said.
Arabica-coffee futures for December delivery slid 0.2 percent to $1.103 a pound. The price fell for the eighth straight session, the longest slump since January 2002. Futures have retreated 23 percent this year, partly because of a bumper crop in Brazil, the top exporter.
Cotton futures for December delivery tumbled 1.8 percent to 79.21 cents a pound on ICE, after touching 78.76 cents, the lowest since Jan. 22. Trading was 83 percent higher than the 100-day average, according to data compiled by Bloomberg.
Planting in the U.S., the largest exporter, probably will rise almost 500,000 acres to 10.7 million in 2014 as farmers shift land to the fiber from corn, Aakash Doshi, an analyst at Citigroup Inc., said in a report.
Cocoa futures for December delivery fell 1 percent to $2,686 a ton in New York. Orange-juice futures for January delivery rose 0.5 percent to $1.216 a pound.