Sugar Rises on Demand Before Festivals, Brazil Crop Speculation
By Claudia Carpenter
June 9 (Bloomberg)
Sugar rose to a two-week high in London and extended gains in New York on increased demand before festivals and speculation that supplies may slow from Brazil, the world’s biggest producer of the sweetener.
There is “heightened demand” as wholesalers build sugar stockpiles before festivals including Ramadan in August, said James Kirkup, director and head of the sugar brokerage at Fortis Bank Nederland in London. Prices rose yesterday after Switzerland-based researcher Kingsman SA reported that some traders are betting on a slowdown in supplies from Brazil.
“There is no question that Brazil got a running start” as processors this year were still working through sugar cane left over from last year, Kirkup said by phone. “The focus has to be on the ongoing crush hitting targets.”
White, or refined, sugar for August delivery climbed $8.90, or 1.8 percent, to $496.10 a metric ton at 12:16 p.m. London time on the Liffe exchange and earlier rose to $499, the highest price since May 26. Raw sugar futures for July delivery jumped 2.2 percent to 15.21 cents a pound on ICE Futures U.S. in New York.
Buyers are interested in 50,000 tons of raw sugar from Brazil, according to a Fortis report today.
Source: businessweek.com
By Claudia Carpenter
June 9 (Bloomberg)
Sugar rose to a two-week high in London and extended gains in New York on increased demand before festivals and speculation that supplies may slow from Brazil, the world’s biggest producer of the sweetener.
There is “heightened demand” as wholesalers build sugar stockpiles before festivals including Ramadan in August, said James Kirkup, director and head of the sugar brokerage at Fortis Bank Nederland in London. Prices rose yesterday after Switzerland-based researcher Kingsman SA reported that some traders are betting on a slowdown in supplies from Brazil.
“There is no question that Brazil got a running start” as processors this year were still working through sugar cane left over from last year, Kirkup said by phone. “The focus has to be on the ongoing crush hitting targets.”
White, or refined, sugar for August delivery climbed $8.90, or 1.8 percent, to $496.10 a metric ton at 12:16 p.m. London time on the Liffe exchange and earlier rose to $499, the highest price since May 26. Raw sugar futures for July delivery jumped 2.2 percent to 15.21 cents a pound on ICE Futures U.S. in New York.
Buyers are interested in 50,000 tons of raw sugar from Brazil, according to a Fortis report today.
Source: businessweek.com
