Sugar futures climb
Thursday, 13 May 2010
LONDON, May 12 (Bloomberg): Sugar advanced in London and New York on speculation a weaker dollar will spur demand for commodities as an alternative investment.
The US Dollar Index, a gauge of the currency against six counterparts, fell as much as 0.3 per cent. White sugar for August delivery climbed $5.90, or 1.3 per cent, to $457.10 a metric ton as of 10 a.m. on the Liffe exchange in London. Raw sugar for July delivery rose 2 per cent to 14.19 cents a pound on ICE Futures US in New York.
Sugar prices more than doubled last year as excess rains in Brazil and a weak monsoon in India reduced output and the dollar index declined 4.2 per cent. Demand from importing nations from Egypt to Mexico also supported futures.
Production in India, the second largest producer after Brazil, was 18.1 million tons in the current sugarcane season that began Oct. 1, Farm Minister Sharad Pawar said in New Delhi today. The London-based International Sugar Organization last week forecast a worldwide supply shortfall of 8.5 million tons in 2009-2010.
The US Dollar Index, a gauge of the currency against six counterparts, fell as much as 0.3 per cent. White sugar for August delivery climbed $5.90, or 1.3 per cent, to $457.10 a metric ton as of 10 a.m. on the Liffe exchange in London. Raw sugar for July delivery rose 2 per cent to 14.19 cents a pound on ICE Futures US in New York.
Sugar prices more than doubled last year as excess rains in Brazil and a weak monsoon in India reduced output and the dollar index declined 4.2 per cent. Demand from importing nations from Egypt to Mexico also supported futures.
Production in India, the second largest producer after Brazil, was 18.1 million tons in the current sugarcane season that began Oct. 1, Farm Minister Sharad Pawar said in New Delhi today. The London-based International Sugar Organization last week forecast a worldwide supply shortfall of 8.5 million tons in 2009-2010.