Sugar prices fall on speculation
Monday, 14 September 2009
NEW YORK, Sept. 13 (Bloomberg): Sugar futures fell on speculation that major consuming countries will slow purchases after prices surged. Coffee jumped to the highest in three weeks.
Countries including Egypt canceled plans to import the sweetener, driving prices down as much as 18 per cent from the 28-year high of 24.85 cents a pound on Sept. 1. Today, futures touched 23.98 cents in New York, 4 cents above the level some analysts say will spur more shipments.
"I expect prices to consolidate around 22 cents before moving lower again as buyers will remain very reluctant to commit to purchases of physical sugar at these high prices," said Mark Hansen, a director of trading at CPM Group in New York. "I do not expect to see real demand emerge until sugar falls to 20 cents or below."
Raw-sugar futures for March delivery fell 0.56 cent, or 2.4 per cent, to 22.86 cents a pound on ICE Futures US. Earlier, the price gained as much as 2.4 per cent. The most-active contract jumped 4.6 per cent in the previous two sessions.
This year, prices have almost doubled as a lack of rain hurt crops in India, the world's largest consumer and second- biggest producer. Excess precipitation in Brazil, the top cane grower, slowed the harvest, straining supplies.
On ICE, arabica-coffee futures for December delivery rose 1.9 cents, or 1.5 per cent, to $1.2655 a pound. Earlier, the price reached $1.28, the highest level for a most-active contract since Aug. 21.
Commodities have climbed in 2009, partly supported by China's economy. The nation's industrial production, lending and retail sales exceeded forecasts in August, reinforcing a global recovery from the deepest recession since World War II. Premier Wen Jiabao pledged on Sept. 10 to sustain stimulus measures to secure the recovery.
"After two boring sessions, coffee decided to move higher, helped by the macro picture that had better Chinese numbers and a signal from the premier that the country will continue spending to stir up the economy," Rodrigo Costa, a vice president of institutional sales at Newedge USA LLC in New York, said in a report.
Coffee has climbed 13 per cent this year as supplies declined in Central America and Colombia, the largest producer of arabica beans behind Brazil.
On London's Liffe exchange, robusta coffee for November delivery climbed $10, or 0.7 per cent, to $1,488 a metric ton.
Arabica coffee is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa.
Countries including Egypt canceled plans to import the sweetener, driving prices down as much as 18 per cent from the 28-year high of 24.85 cents a pound on Sept. 1. Today, futures touched 23.98 cents in New York, 4 cents above the level some analysts say will spur more shipments.
"I expect prices to consolidate around 22 cents before moving lower again as buyers will remain very reluctant to commit to purchases of physical sugar at these high prices," said Mark Hansen, a director of trading at CPM Group in New York. "I do not expect to see real demand emerge until sugar falls to 20 cents or below."
Raw-sugar futures for March delivery fell 0.56 cent, or 2.4 per cent, to 22.86 cents a pound on ICE Futures US. Earlier, the price gained as much as 2.4 per cent. The most-active contract jumped 4.6 per cent in the previous two sessions.
This year, prices have almost doubled as a lack of rain hurt crops in India, the world's largest consumer and second- biggest producer. Excess precipitation in Brazil, the top cane grower, slowed the harvest, straining supplies.
On ICE, arabica-coffee futures for December delivery rose 1.9 cents, or 1.5 per cent, to $1.2655 a pound. Earlier, the price reached $1.28, the highest level for a most-active contract since Aug. 21.
Commodities have climbed in 2009, partly supported by China's economy. The nation's industrial production, lending and retail sales exceeded forecasts in August, reinforcing a global recovery from the deepest recession since World War II. Premier Wen Jiabao pledged on Sept. 10 to sustain stimulus measures to secure the recovery.
"After two boring sessions, coffee decided to move higher, helped by the macro picture that had better Chinese numbers and a signal from the premier that the country will continue spending to stir up the economy," Rodrigo Costa, a vice president of institutional sales at Newedge USA LLC in New York, said in a report.
Coffee has climbed 13 per cent this year as supplies declined in Central America and Colombia, the largest producer of arabica beans behind Brazil.
On London's Liffe exchange, robusta coffee for November delivery climbed $10, or 0.7 per cent, to $1,488 a metric ton.
Arabica coffee is grown mainly in Latin America and brewed by specialty companies including Starbucks Corp. Robusta beans, used in instant coffee, are harvested mostly in Asia and parts of Africa.