Investing.com - Sugar futures were up on Tuesday, trading close to a four-week high as concerns over sugar crop conditions in Brazil and indications of robust demand from China boosted prices.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2486 a pound during European afternoon trade, climbing 0.85%.
It earlier rose by as much as 0.95% to trade at USD0.2488 a pound, the highest since January 26.
Sugar prices continued to draw support from concerns over crop conditions in Brazil after industry group Unica said last week that sugar production in the country’s Center South fell 6.8% to 31.2 million metric tons through February 1, compared to 33.5 million tons a year earlier.
Crops in the Brazil’s Center South-region, which produces nearly 90% of the nation’s sugar and ethanol, were damaged by freezing weather last year and by drought in previous harvests.
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.
Agribusiness financial service provider Rabobank said in a report Monday that sugar prices are expected to remain “fairly well supported” in the near-term, citing a "perceived shortage of export availability" and the "unclear" outlook for output in Brazil's main producing Center South-region .
Sugar futures have staged rallies or recoveries heading into June in each of the last three years, sparked by fears over weak Brazilian output.
Data from China’s General Administration of Customs showing that China’s sugar imports in January soared almost ten-fold from a year earlier to 141,768 tonnes provided further support.
The robust import figure comes a day after the International Sugar Organization raised its forecast for China’s sugar purchases in the 2011-12 marketing season above 3 million tonnes.
In 2011, China imported 2.9 million tons of sugar, up 65% from 2010.
China is the world’s largest sugar consumer. Hopes for increased Chinese demand for the sweetener have helped support prices in recent weeks.
However, the ISO also increased its forecast for a projected global sugar surplus in the 2011-12 season to 5.17 million tonnes, up from a forecast of 4.46 million issued in its previous quarterly update.
Agricultural commodity prices received a lift after European officials approved a long-awaited EUR130 billion bailout package for Greece, helping the debt-laden country avert a messy sovereign debt default.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery rose 0.45% to trade at USD0.9307 a pound, while Arabica coffee for May delivery eased 0.15% to trade at USD2.0178 a pound.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2486 a pound during European afternoon trade, climbing 0.85%.
It earlier rose by as much as 0.95% to trade at USD0.2488 a pound, the highest since January 26.
Sugar prices continued to draw support from concerns over crop conditions in Brazil after industry group Unica said last week that sugar production in the country’s Center South fell 6.8% to 31.2 million metric tons through February 1, compared to 33.5 million tons a year earlier.
Crops in the Brazil’s Center South-region, which produces nearly 90% of the nation’s sugar and ethanol, were damaged by freezing weather last year and by drought in previous harvests.
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.
Agribusiness financial service provider Rabobank said in a report Monday that sugar prices are expected to remain “fairly well supported” in the near-term, citing a "perceived shortage of export availability" and the "unclear" outlook for output in Brazil's main producing Center South-region .
Sugar futures have staged rallies or recoveries heading into June in each of the last three years, sparked by fears over weak Brazilian output.
Data from China’s General Administration of Customs showing that China’s sugar imports in January soared almost ten-fold from a year earlier to 141,768 tonnes provided further support.
The robust import figure comes a day after the International Sugar Organization raised its forecast for China’s sugar purchases in the 2011-12 marketing season above 3 million tonnes.
In 2011, China imported 2.9 million tons of sugar, up 65% from 2010.
China is the world’s largest sugar consumer. Hopes for increased Chinese demand for the sweetener have helped support prices in recent weeks.
However, the ISO also increased its forecast for a projected global sugar surplus in the 2011-12 season to 5.17 million tonnes, up from a forecast of 4.46 million issued in its previous quarterly update.
Agricultural commodity prices received a lift after European officials approved a long-awaited EUR130 billion bailout package for Greece, helping the debt-laden country avert a messy sovereign debt default.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery rose 0.45% to trade at USD0.9307 a pound, while Arabica coffee for May delivery eased 0.15% to trade at USD2.0178 a pound.