Above-average rainfall in May and June in the main Brazilian growing region of center south delayed the crop and shipments. Some sugar cane in India is being turned to fodder because of rain delays, Agriculture Minister Sharad Pawar told reporters in Mumbai today, saying it’s too early to comment on the output of the sweetener in the country.
“The fundamental situation is concerning,” said Julien Benichou, an agriculture derivatives broker at Starsupply Renewables SA in Nyon, Switzerland. “There is a small amount of physical sugar getting out of Brazil at the moment, and the recent dryness in main growing area in India has been bringing some speculations regarding their next export quotas.”
Refined sugar for October delivery gained 1.1 percent to $600.50 a metric ton by 10:47 a.m. on NYSE Liffe in London. The sweetener is down 1.8 percent this week. Raw sugar for October delivery advanced 0.7 percent to 22.08 cents a pound on ICE
Futures U.S. in New York.
New York futures reached an 11-week high of 22.69 cents a pound in New York yesterday. Nine of 11 analysts surveyed by Bloomberg said they expect raw sugar to rally next week and two were bearish, the highest proportion of bulls since Jan. 6.
Rain forecast for today and the weekend will probably further delay harvesting until July 10, according to Somar Meteorologia, a Sao Paulo-based weather forecaster. Rains also caused congestion at Brazil’s main ports, with the amount of sugar waiting to be loaded at Vitoria, Paranagua and Santos rising to 3.16 million tons over the past week, according to shipping agency Williams Servicos Maritimos Ltda.
Cocoa for March delivery dropped 1.1 percent to 1,528 pounds ($2,375) a ton in London. Cocoa for September delivery fell 1.4 percent to $2,296 a ton in New York.
Robusta coffee for September delivery fell 0.8 percent to $2,082 a ton. Arabica coffee for September delivery was down 0.8 percent at $1.788 a pound in New York.