Sugar climbs to nine-week high
Monday, 28 June 2010
NEW YORK, June 27 (Bloomberg): Sugar futures jumped to a nine-week high in New York on speculation that demand will remain buoyant. Cocoa declined for the first time in a week, while coffee gained.
Food companies and refiners are trying to rebuild sugar stockpiles after drawing them down when credit was scarcer and prices were higher earlier this year, according to a report by Newedge Group. Prices rose to a 29-year high of 30.4 cents a pound on February 1.
"Overall, stocks are low," said Ricardo Scaff, a trader at Rabobank International in London. "The tightness in this market may last longer."
Raw sugar for October delivery rose 0.2 cent, or 1.2 per cent, to 16.39 cents a pound on ICE Futures US in New York. Earlier, the commodity climbed to 16.48 cents, the highest level for a most-active contract since April 22. The price gained 6.6 per cent this week, the third increase in four weeks.
On the Liffe exchange in London, white-sugar futures for October delivery advanced $16.40, or 3.5 per cent, to $484.50 a metric tonne, the biggest gain since June 8.
The market may have "physical sugar shortages" in the third quarter, London-based broker Czarnikow Group Ltd said in a review.
Food companies and refiners are trying to rebuild sugar stockpiles after drawing them down when credit was scarcer and prices were higher earlier this year, according to a report by Newedge Group. Prices rose to a 29-year high of 30.4 cents a pound on February 1.
"Overall, stocks are low," said Ricardo Scaff, a trader at Rabobank International in London. "The tightness in this market may last longer."
Raw sugar for October delivery rose 0.2 cent, or 1.2 per cent, to 16.39 cents a pound on ICE Futures US in New York. Earlier, the commodity climbed to 16.48 cents, the highest level for a most-active contract since April 22. The price gained 6.6 per cent this week, the third increase in four weeks.
On the Liffe exchange in London, white-sugar futures for October delivery advanced $16.40, or 3.5 per cent, to $484.50 a metric tonne, the biggest gain since June 8.
The market may have "physical sugar shortages" in the third quarter, London-based broker Czarnikow Group Ltd said in a review.