Investing.com – Sugar futures were down for a fourth day on Wednesday, slumping to a four-week low after top producer Brazil forecast a decline in production that was above market expectations.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2533 a pound during European afternoon trade, dropping 0.88%.
It earlier fell by as much as 0.98% to trade at USD0.2530 a pound, the lowest price since October 7.
Sugar prices came under pressure after Unica, Brazil’s sugar industry association, lowered its forecast for the 2011-12 sugar cane crop in Brazil's key center-south region to 488.5 million metric tons, down 4.3% from a previous estimate of 510.2 million tons.
Analysts had expected Unica to lower its production outlook by 5.9% to 480 million metric tons, easing concerns over the nation’s sugar harvest.
Unica now sees center-south sugar production at 30.8 million tons, down 2.4% from its previous estimate of 31.57 million tons
Brazil’s largest sugar broker ICAP said in a report earlier that, “the sugar number could be bearish as market participants were expecting to see something around 30 million tons or even smaller than that."
Brazil’s center-south region, which accounts for nearly 90% of Brazil's sugarcane output, produced 556.95 million tons of cane in the 2010-11 season.
Brazil is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
A broadly weaker U.S. dollar helped limit losses, as investors awaited the conclusion of the Federal Reserve’s policy-setting meeting and kept a close eye on developments in Greece.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.55% to trade at 77.01.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere on the ICE Futures Exchange, cotton futures for December delivery rose 0.62% to trade at USD1.0016 a pound, while Arabica coffee for December delivery shed 0.39% to trade at USD2.2380 a pound.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2533 a pound during European afternoon trade, dropping 0.88%.
It earlier fell by as much as 0.98% to trade at USD0.2530 a pound, the lowest price since October 7.
Sugar prices came under pressure after Unica, Brazil’s sugar industry association, lowered its forecast for the 2011-12 sugar cane crop in Brazil's key center-south region to 488.5 million metric tons, down 4.3% from a previous estimate of 510.2 million tons.
Analysts had expected Unica to lower its production outlook by 5.9% to 480 million metric tons, easing concerns over the nation’s sugar harvest.
Unica now sees center-south sugar production at 30.8 million tons, down 2.4% from its previous estimate of 31.57 million tons
Brazil’s largest sugar broker ICAP said in a report earlier that, “the sugar number could be bearish as market participants were expecting to see something around 30 million tons or even smaller than that."
Brazil’s center-south region, which accounts for nearly 90% of Brazil's sugarcane output, produced 556.95 million tons of cane in the 2010-11 season.
Brazil is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
A broadly weaker U.S. dollar helped limit losses, as investors awaited the conclusion of the Federal Reserve’s policy-setting meeting and kept a close eye on developments in Greece.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.55% to trade at 77.01.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere on the ICE Futures Exchange, cotton futures for December delivery rose 0.62% to trade at USD1.0016 a pound, while Arabica coffee for December delivery shed 0.39% to trade at USD2.2380 a pound.