BLBG: Sugar Rises to Highest Price Since 1989 on Speculation About India Exports
Sugar rebounded in London, climbing to the highest price since at least 1989, on speculation India, the world’s second-biggest producer, may cap exports to boost domestic supplies.
India may consider ending curbs on exports this month, Farm Minister Sharad Pawar said on Oct. 27. Shipments have been regulated after drought damaged its crops last season.
“People are still looking at India and how much sugar they are likely to export and when,” said Jake Wetherall, a trader in London at Rabobank International. “The consensus seems to be that they won’t export enough to stop prices going higher still.”
White, or refined, sugar for March delivery climbed $8.30, or 1.1 percent, to $799 a metric ton on NYSE Liffe at 10:09 a.m. London time. It earlier touched $811 a ton, the highest price for a most-active contract since at least January 1989.
Raw sugar for March delivery fell 0.13 cent, or 0.4 percent, to 32.68 cents a pound on ICE Futures U.S. in New York, erasing a gain earlier today to 33.39 cents a pound, the highest level for a most-active contract since January 1981.
India, the world’s largest consumer of sugar, may export 1.5 million to 2 million tons of sugar, with the total crop at between 24.5 million and 25.5 million tons, New York-based Commodore Research & Consultancy said this week. Commodore said earlier this year the harvest was expected to total as much as 26 million tons with 3.5 million tons of exports.
Robusta coffee for January delivery fell in London for the second day, declining $28, or 1.4 percent, to $1,956 a ton on NYSE Liffe. Arabica coffee for December delivery added 1.3 cents, or 0.6 percent, to $2.1625 a pound in New York.
Cocoa for December delivery rose 1 pound, or 0.1 percent, to 1,873 pounds ($3,017) a ton in London. The chocolate ingredient for December delivery added $9, or 0.3 percent, to $2,864 a ton in New York.
To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.
