Sugar futures climbed to the highest in more than five months on concern that rains will limit supplies from Brazil, the world’s biggest producer and exporter. Cotton, coffee and orange juice rose. Cocoa slid.
Rains this week in Sao Paulo, the main-growing state in the South American nation, will hinder the current sugar-cane harvest and may reduce yields, Somar Meteorologia said yesterday in an e-mailed report. Precipitation also hampered fieldwork last week, according to the forecaster. Sugar output in the Center South, the top producing region, fell 5.6 percent in Sept. 1-15, Unica, a Sao Paulo-based industry group, said today.
“The rain is definitely going to hold down the crush for the second half of September,” supporting prices, Alex Oliveira, a trader with Newedge Group in New York, said in a telephone interview.
Raw sugar for March delivery rose 1 percent to settle at 17.93 cents a pound at 2 p.m. on ICE Futures U.S. in New York, after reaching 17.96 cents, the highest for a most-active contract since April 12.
Cotton futures for December delivery advanced 0.1 percent to 84.38 cents a pound, the first gain in four sessions.
Pakistan cut its crop estimate 5.5 percent as sowing declined. The country is the world’s fourth-largest producer after China, India and the U.S.
“Anytime that you reduce world production, it helps prices,” Sid Love, the president of Joe Kropf & Sid Love Consulting Services in Overland Park, Kansas, said in a telephone interview.
Arabica-coffee futures for delivery in December added 0.7 percent to $1.1785 a pound on ICE.
Orange-juice futures for November delivery rose 1 percent to $1.276 a pound, the third straight advance.
Cocoa futures for delivery in December fell 0.3 percent to $2,603 a metric ton.