BLBG: Sugar Climbs to Seven-Month High in New York as Dry Weather May Curb Crop
Raw-sugar futures rose to a seven- month high as dry weather threatens crops in Brazil, the world’s largest grower. Coffee fell to the lowest price since August, and cocoa gained.
Brazil’s Center South, the top sugar-growing region, may produce 560 million metric tons this year, ABN Amro Bank NV and VM Group said today. That’s less than forecast by Unica, an industry group. The Amazon River is at its lowest level since 1963 because of drought, the National Water Agency said.
“Dry weather in Brazil is taking its toll,” James Kirkup, the director and the head of the sugar brokerage at ABN Amro, said in the report.
Raw sugar for March delivery rose 0.78 cent, or 3.3 percent, to settle at 24.4 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the commodity reached 24.47 cents, the highest level for a most-active contract since Feb. 24. This week, the price climbed 4.9 percent, the seventh straight gain.
In London, refined sugar for December delivery jumped $14.70, or 2.4 percent, to settle at $633.10 on NYSE Liffe. Earlier, the price reached $633.70, the highest level since March 1.
ABN Amro and VM Group lowered their estimate of the global surplus to 1.2 million tons for the season starting Oct. 1, from 5.64 million forecast in June.
Arabica coffee for December delivery fell 1.05 cents, or 0.6 percent, to $1.806 a pound in New York. Earlier, the price touched $1.7825, the lowest level since Aug. 31. This week, the commodity dropped 4.6 percent, the most since early August.
In London, robusta-coffee futures for November delivery dropped $10, or 0.6 percent, to settle at $1,727 a ton.
Cocoa futures for December delivery rose $14, or 0.5 percent, to settle at $2,794 a ton in New York. The price climbed 1.7 percent this week.
In London, cocoa futures for December delivery advanced 4 pounds, or 0.2 percent, to settle at 1,883 pounds ($2,979) a ton.
To contact the reporters on this story: Chris Kay in London at ckay5@bloomberg.net; Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
