Friday, September 10, 2010
RSS Entries Follow us on Twitter Follow us on Facebook
Sugar Falls as Forecasts for Jump in Brazil Output Halt Rally

Sugar Falls as Forecasts for Jump in Brazil Output Halt Rally

Sugar futures fell from a four-month high on forecasts for a bumper crop in Brazil, the world’s biggest producer.

Output in Brazil will rise 14 percent to 37.5 million metric tons in the year that began on April 1 from a year earlier, Datagro Ltd. said today in a report. Dry weather will allow growers to speed up harvesting and finish as early as December, the Sao-Paulo based researcher said. Sugar prices surged 4.8 percent yesterday, the most this month.

“What we’re seeing is a natural setback,” said Jeff Bauml, a senior vice president at R.J. O’Brien & Associates, a broker in New York. “There’s some profit-taking in long positions. Nothing has changed in fundamentals.”

Raw sugar for October delivery fell 0.04 cent, or 0.2 percent, to 18.26 cents a pound on ICE Futures U.S. in New York. Earlier, the price reached 18.66 cents, the highest level for a most-active contract since March 22. The commodity gained 6.7 percent this week on rising demand from Asia and delayed shipments from Brazil. ‘Futures have dropped 32 percent this year.

“The world sugar market will progressively move out of a deficit and swing back into surplus in 2010-2011,” Sucden, a Paris-based trading company, said today in a report.

The surplus will emerge by the end of the Brazilian harvest and “start pressuring the market” with the beginning of the Indian crop in October, Sucden said.

On London’s Liffe exchange, refined-sugar futures for October delivery was little changed at $559.20 a ton.

Source

Related posts:

  1. Sugar Plunges Most in Three Weeks on Brazil, India Output Gains
  2. Sugar Climbs to Two-Week High as Crop Damage May Curb Supplies
  3. Record Brazil Sugar Crop to Depress Prices, ISO Says
  4. Brazil Sugar-Cane Dryness to Pare Output This Year, Unica Says
  5. Coffee prices jump on cold snap in Brazil

Tags: , , , , , , ,


This entry was posted on Friday, July 23rd, 2010 at 7:20 pm and is filed under Stock & Bond Market News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Petrobras Still Plans Share Sale by End of First Half

Petroleo Brasileiro SA, Brazil’s state-run oil producer, still plans to sell new shares by the end of the first half as it seeks to fund the world’s largest investment program in the oil and gas industry.

The sale, proposed by President Luiz Inacio Lula da Silva last year as part of plans to swap government oil reserves for new stock in the company, depends “heavily” on congress, Chief Executive Officer Jose Sergio Gabrielli told reporters in Rio de Janeiro today. The planned offer would also include selling shares to minority investors.

Petrobras, as the Rio de Janeiro-based company is known, plans to invest between $200 billion and $220 billion through 2014 as it taps Brazil’s pre-salt offshore region. The area includes Tupi, the largest oil discovery in the Americas since Mexico’s Cantarell in 1976.

“We are going to look for resources wherever we can find them, and at a good cost,” Gabrielli told reporters today when asked if he was considering loans from China and from banks. “The most important thing right now is to increase equity.”

On March 24, Gabrielli said the company expects final approval by lawmakers and a presidential sanction for the share sale by June 4. He said Petrobras estimates the offer may raise $15 billion to $25 billion from minority shareholders.

Read the full article.

To contact the reporter on this story: Peter Millard in Mexico City at pmillard1@bloomberg.net; Rodrigo Orihuela in Buenos Aires at rorihuela@bloomberg.net