BLBG: Sugar Rises in N.Y., Follows Crude Oil Higher as Dollar Slips
By Ron Day
Dec. 10 (Bloomberg) -- Sugar rose in New York as higher crude-oil prices boosted demand for fuel made from cane in Brazil, and the dollar weakened.
Crude oil climbed on speculation that Russia may coordinate a production cut with the Organization of Petroleum Exporting Countries next week in an attempt to raise prices. That helps demand for ethanol, which can reduce the amount of cane available to make sugar in Brazil, the world’s biggest grower. U.S. proposals to loan money to ailing automakers helped weaken the dollar against a basket of six major currencies.
“We may be subjected to outside influences such as the dollar and other markets,” Peter Hoyt, a sugar trader at Sucden Financial Ltd. in London, said today in a report.
Raw-sugar futures for March delivery added 0.15 cent, or 1.3 percent, to 11.37 cents a pound at 9:05 a.m. on ICE Futures U.S. in New York. Before today, the price gained 13 percent in the past year, the top performer on the Reuters/Jefferies CRB Index of 19 agricultural, metal and energy futures.
To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net.
