07/04/10 – Sugar futures rose the most in a week on speculation that more rain may delay the harvest in Brazil, the world´s largest producer.
Rio de Janeiro was flooded by record rainfall yesterday, and the government´s Meteorology Institute forecast more showers in the Center South region, which produces 90 percent of Brazil´s sugar. The commodity´s price more than doubled last year as adverse weather reduced output in Brazil and India, the second-biggest producer.
“People are cautious about the incessant rain in Brazil, and more rain could delay crushing,” said Jeff Bauml, a senior vice president at R.J. O´Brien & Associates, a broker in New York.
Raw sugar for May delivery climbed 0.21 cent, or 1.3 percent, to 16.1 cents a pound at 10:47 a.m. on ICE Futures U.S. in New York. A close at that level would mark the biggest gain for a most-active contract since March 30.
Yesterday, futures dropped 3.1 percent, leaving the prices down 41 percent this year.
Sugar is “trying to find its equilibrium” after getting “hammered yesterday for no apparent reason,” Bauml said. “It should find a floor at 16 cents.” | 