Investing.com – Sugar futures rose to a fresh seven-week high on Monday, extending sharp gains from the previous session as lingering concerns over sugar crops in Brazil, the world’s biggest producer, boosted prices.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2384 a pound during European morning trade, gaining 0.32%.
It earlier rose to USD0.2421 a pound, the highest price since April 15.
Sugar prices jumped nearly 4.6% on Friday after ICAP do Brasil, the nation’s biggest sugar industry group said that harvests from sugar-cane crops in Brazil were expected to fall short of a previous estimate, as adverse weather affected crops in recent weeks.
According to the group, the sugar-cane harvest in Brazil’s Center South, the largest sugar-producing region, was expected to total 550 million metric tons in the 2011-12 marketing season, down from March’s estimate of 568.5 million tons.
The downbeat forecast added to worries over the nation’s sugar crops after Unica, Brazil’s sugar industry association, said last week that output in Brazil’s Center South fell 17% percent in the first half of May from a year earlier.
Concerns over delays at Brazilian ports also contributed to strength in sugar prices.
Cosan Industria & Comercio and Royal Dutch Shell’s Brazilian joint venture expected a backlog of sugar shipments at the country’s ports to last through July, as delays were caused by a lack of sugar.
As much as 2.25 million tons of sugar was waiting to load at Brazil’s main ports, data from shipping agency Williams Brasil showed over the weekend.
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.
Elsewhere, wheat for July delivery slipped 0.7% to trade at USD7.6762 a bushel, corn for July delivery shed 0.15% to trade at USD7.5112 a bushel, while soybeans for July delivery dipped 0.2% to trade at USD14.0912 a bushel during European morning trade.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2384 a pound during European morning trade, gaining 0.32%.
It earlier rose to USD0.2421 a pound, the highest price since April 15.
Sugar prices jumped nearly 4.6% on Friday after ICAP do Brasil, the nation’s biggest sugar industry group said that harvests from sugar-cane crops in Brazil were expected to fall short of a previous estimate, as adverse weather affected crops in recent weeks.
According to the group, the sugar-cane harvest in Brazil’s Center South, the largest sugar-producing region, was expected to total 550 million metric tons in the 2011-12 marketing season, down from March’s estimate of 568.5 million tons.
The downbeat forecast added to worries over the nation’s sugar crops after Unica, Brazil’s sugar industry association, said last week that output in Brazil’s Center South fell 17% percent in the first half of May from a year earlier.
Concerns over delays at Brazilian ports also contributed to strength in sugar prices.
Cosan Industria & Comercio and Royal Dutch Shell’s Brazilian joint venture expected a backlog of sugar shipments at the country’s ports to last through July, as delays were caused by a lack of sugar.
As much as 2.25 million tons of sugar was waiting to load at Brazil’s main ports, data from shipping agency Williams Brasil showed over the weekend.
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.
Elsewhere, wheat for July delivery slipped 0.7% to trade at USD7.6762 a bushel, corn for July delivery shed 0.15% to trade at USD7.5112 a bushel, while soybeans for July delivery dipped 0.2% to trade at USD14.0912 a bushel during European morning trade.