Investing.com – Sugar futures were down on Thursday, dropping to a two-day low amid speculation that increased production in Europe and Asia would compensate for production losses in Brazil, the world’s largest producer.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.2941 a pound during European morning trade, tumbling 1.11%.
It earlier fell as much as 1.25% to trade at USD0.2936 a pound, the lowest price since August 30.
Leading agribusiness financial service provider Rabobank lowered its forecast for total global sugar stockpiles for the 2011-12 marketing season by a mere 300,000 tons to 9.5 million tonnes.
The modest revision was significantly higher than many recent estimates, easing concerns over tightening global supplies.
Meanwhile, sugar industry group Kingsman lowered its sugar price forecast by 13% to USD0.2500 a pound, citing increased production from India, the world’s second largest sugar producer.
In a report published Wednesday, Kingsman expected Indian sugar output to total 26 million tons in the 2011-12 marketing season, 7.4% higher than last season.
Sugar prices rose to a nine-month high of USD0.3184 a pound on August 24 as drought conditions in Brazil raised concerns over lower sugar output.
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.
Meanwhile, a stronger U.S. dollar also weighed on prices, as it reduces the appeal of U.S. crops to overseas buyers and makes dollar-priced commodities less attractive as an alternative investment.
The greenback rose to a two-week high against the euro, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.53% to trade at 74.60, the highest since August 15.
Elsewhere, on the Chicago Mercantile Exchange, wheat for December delivery fell 1.03% to trade at USD7.8175 a bushel, corn for December delivery dropped 1.35% to trade at USD7.5900 a bushel, while soybeans for November delivery shed 0.76% to trade at USD14.4513 a bushel.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.2941 a pound during European morning trade, tumbling 1.11%.
It earlier fell as much as 1.25% to trade at USD0.2936 a pound, the lowest price since August 30.
Leading agribusiness financial service provider Rabobank lowered its forecast for total global sugar stockpiles for the 2011-12 marketing season by a mere 300,000 tons to 9.5 million tonnes.
The modest revision was significantly higher than many recent estimates, easing concerns over tightening global supplies.
Meanwhile, sugar industry group Kingsman lowered its sugar price forecast by 13% to USD0.2500 a pound, citing increased production from India, the world’s second largest sugar producer.
In a report published Wednesday, Kingsman expected Indian sugar output to total 26 million tons in the 2011-12 marketing season, 7.4% higher than last season.
Sugar prices rose to a nine-month high of USD0.3184 a pound on August 24 as drought conditions in Brazil raised concerns over lower sugar output.
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.
Meanwhile, a stronger U.S. dollar also weighed on prices, as it reduces the appeal of U.S. crops to overseas buyers and makes dollar-priced commodities less attractive as an alternative investment.
The greenback rose to a two-week high against the euro, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.53% to trade at 74.60, the highest since August 15.
Elsewhere, on the Chicago Mercantile Exchange, wheat for December delivery fell 1.03% to trade at USD7.8175 a bushel, corn for December delivery dropped 1.35% to trade at USD7.5900 a bushel, while soybeans for November delivery shed 0.76% to trade at USD14.4513 a bushel.