Investing.com – Sugar futures rallied for a fourth day on Tuesday, hitting a nine-week high as a combination of lingering concerns over sugar crops in Brazil, worries over shipping delays from Thailand and a weaker U.S. dollar boosted prices.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2568 a pound during European morning trade, climbing 0.77%.
It earlier rose to USD0.2573 a pound, the highest price since April 13.
Sao Paulo-based sugar industry group Datagro reduced its forecast for the nation’s sugar harvest to 536 million metric tons, down from an earlier estimate of 561 million tons. The nation produced nearly 557 million tons last year.
The group said that aging plants and wet weather while the crop was developing reduced yields from the nation’s Center-South region, the world’s largest sugar-producing area.
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, Piromsak Sasunee, chief executive of Thai Sugar Trading, the nation’s largest shipper said that vessels in Thai ports were waiting to load as much as 7% of this year’s supply, as a sunken ship blocking one of the main waterways and a lack of labor combined to delay exports.
Thailand is the world’s second biggest sugar exporter.
Weakness in the U.S. dollar also contributed to sugar’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21% to trade at 74.73.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, wheat for July delivery slipped 0.17% to trade at USD7.4138 a bushel, corn for July delivery dropped 1.1% to trade at USD7.7312 a bushel, while soybeans for July delivery eased up 0.06% to trade at USD13.8200 a bushel during European morning trade.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2568 a pound during European morning trade, climbing 0.77%.
It earlier rose to USD0.2573 a pound, the highest price since April 13.
Sao Paulo-based sugar industry group Datagro reduced its forecast for the nation’s sugar harvest to 536 million metric tons, down from an earlier estimate of 561 million tons. The nation produced nearly 557 million tons last year.
The group said that aging plants and wet weather while the crop was developing reduced yields from the nation’s Center-South region, the world’s largest sugar-producing area.
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, Piromsak Sasunee, chief executive of Thai Sugar Trading, the nation’s largest shipper said that vessels in Thai ports were waiting to load as much as 7% of this year’s supply, as a sunken ship blocking one of the main waterways and a lack of labor combined to delay exports.
Thailand is the world’s second biggest sugar exporter.
Weakness in the U.S. dollar also contributed to sugar’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21% to trade at 74.73.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, wheat for July delivery slipped 0.17% to trade at USD7.4138 a bushel, corn for July delivery dropped 1.1% to trade at USD7.7312 a bushel, while soybeans for July delivery eased up 0.06% to trade at USD13.8200 a bushel during European morning trade.