BLBG:Sugar Falls to Three-Week Low on Increased Brazilian Exports; Cocoa Slides Q
Sugar fell to a three-week low on signs of rising supplies from Brazil, the world’s top exporter. Cocoa declined.
Sugar shipments rose to an eight-month high in July, Brazil’s Trade Ministry said yesterday. Last month, futures jumped 13 percent on concern that output would trail estimates by analysts. Prices will remain volatile as output shrinks in Brazil and harvests increase in Asia, said Francois Nehama, a director of trading at Sucden Americas Corp.
“There’s tons of supply that’s probably going to hit the market before you know it,” Michael Smith, the president of T&K Futures & Options in Port Saint Lucie, Florida, said in a telephone interview.
Raw sugar for October delivery slid 0.81 cent, or 2.8 percent, to settle at 28.16 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price touched 28.06 cents, the lowest for a most-active contract since July 7. The commodity has dropped 12 percent this year.
Cocoa futures for September delivery fell $22, or 0.7 percent, to $2,933 a metric ton in New York.
On NYSE Liffe in London, sugar and cocoa declined.
To contact the reporters on this story: Justin Doom in New York at jdoom1@bloomberg.net; Isis Almeida in London at ialmeida3@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
