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09/04/10 – White sugar headed for its first weekly gain in eight weeks in London on speculation that a supply shortfall may linger and spur importers to boost stockpiles.
China, the world´s largest consumer after India, may boost imports as output declines because of reduced sugar-beet acreage and a drought in Yunnan province, Rabobank International said yesterday. Sugar prices have plunged this year after more than doubling in 2009 as bad weather curbed output in India and Brazil, the two biggest producers.
“As we come to the end of the week, it is possible that some profitable short-covering will be likely,” said David Sadler, head of the sugar desk at Sucden Financial Ltd. in the U.K. capital. Short-covering refers to purchases by investors who had bet on price declines.
White sugar for May delivery slipped 70 cents, or 0.1 percent, to $490 a metric ton at 2:58 p.m. on the Liffe exchange. Prices have climbed 1.7 percent this week. May- delivery sugar is $28.60 more expensive than the August contract, indicating concern about immediate supply.
Raw sugar for May delivery rose 0.3 percent to 15.96 cents a pound on ICE Futures U.S. in New York. Russia´s raw sugar imports jumped more than fourfold to 377,233 tons in the year through April 8, the country´s Sugar Producers Union said.
White sugar will gain in the week ahead, according to five of 12 traders, analysts and brokers surveyed by Bloomberg. Three said the price would fall and four predicted no change.
Worldwide Deficit
The global sugar deficit may come to about 8 million tons, less than the 9.4 million tons projected in February based on preliminary figures, because of higher output in India, the London-based International Sugar Organization said in a monthly market report e-mailed today. |
