Investing.com – Sugar futures rallied for a fourth day on Thursday, climbing to a two-week high, as prices were boosted by renewed concerns over sugar crops in Brazil, while speculation of increased demand from China lent further support.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2442 a pound during European afternoon trade, rallying 1.5%.
It earlier rose by as much as 1.66% to trade at USD0.2445 a pound, the highest since January 5.
Concerns over Brazil's sugar harvest escalated after Brazil-based agricultural meteorologist Somar Meteorologia warned that cane harvesting in the country’s Center South region, the country’s main producing area, may be delayed this year because of rainfall.
The start of the 2012-13 Brazilian sugar harvest was expected to be delayed until the end of April or the beginning of May, instead of in early April.
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.
The downbeat outlook boosted speculation the biggest sugar surplus since the 2006-07 season will shrink in the next harvest.
Meanwhile, speculation mounted that China will increase imports of sugar in the upcoming marketing season, as domestic production trails the pace of rising demand.
The International Sugar Organization said last week that Chinese consumption of the sweetener was forecast to total 14.8 million tonnes, while production was expected to come in at 12.6 million tonnes.
Indications that China planned to loosen monetary policy in the near-term provided further support after the People's Bank of China offered CNY183 billion, or USD29 billion, of 14-day reverse repurchase agreements, easing liquidity conditions ahead of the Lunar New Year holiday.
Chinese policy makers are under pressure to loosen monetary policy after growth in the world’s second biggest economy moderated to the slowest pace in 10 quarters.
China is the world's largest sugar consumer and fourth biggest importer of the sweetener.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery dipped 0.1% to trade at USD0.9744 a pound, while Arabica coffee for March delivery jumped 1.6% to trade at USD2.2720 a pound.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2442 a pound during European afternoon trade, rallying 1.5%.
It earlier rose by as much as 1.66% to trade at USD0.2445 a pound, the highest since January 5.
Concerns over Brazil's sugar harvest escalated after Brazil-based agricultural meteorologist Somar Meteorologia warned that cane harvesting in the country’s Center South region, the country’s main producing area, may be delayed this year because of rainfall.
The start of the 2012-13 Brazilian sugar harvest was expected to be delayed until the end of April or the beginning of May, instead of in early April.
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.
The downbeat outlook boosted speculation the biggest sugar surplus since the 2006-07 season will shrink in the next harvest.
Meanwhile, speculation mounted that China will increase imports of sugar in the upcoming marketing season, as domestic production trails the pace of rising demand.
The International Sugar Organization said last week that Chinese consumption of the sweetener was forecast to total 14.8 million tonnes, while production was expected to come in at 12.6 million tonnes.
Indications that China planned to loosen monetary policy in the near-term provided further support after the People's Bank of China offered CNY183 billion, or USD29 billion, of 14-day reverse repurchase agreements, easing liquidity conditions ahead of the Lunar New Year holiday.
Chinese policy makers are under pressure to loosen monetary policy after growth in the world’s second biggest economy moderated to the slowest pace in 10 quarters.
China is the world's largest sugar consumer and fourth biggest importer of the sweetener.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery dipped 0.1% to trade at USD0.9744 a pound, while Arabica coffee for March delivery jumped 1.6% to trade at USD2.2720 a pound.