Sugar Gains as Supplies May Tighten on Brazil’s Port Backlog
Raw-sugar prices climbed amid concern that supplies from Brazil, the world’s top producer, will be disrupted.
There may be delays in sugar loading in the Port of Santos, Brazil’s biggest, until October as low inventories among food companies stoke demand, crop forecaster Datagro Ltd. said last week. Before today, sugar futures dropped 32 percent this year on estimates that rising production will end two years of supply deficits.
“It seems we will have further disruption to the shipping problems in Brazil,” Thomas Kujawa, a co-head of the soft- commodities department at Sucden Financial Ltd. in London, said today in a report. “It seems bad weather in Santos will prompt further spikes, as the only place the world can get its sugar seems to be Center South Brazil.”
Raw sugar for October delivery rose 0.2 cent, or 1.1 percent, to 18.46 cents a pound at 9:39 a.m. on ICE Futures U.S. in New York. Earlier, the commodity reached 18.58 cents, near the four-month high of 18.66 cents reached in the previous session. The price gained 6.7 percent last week.
White-sugar futures for October delivery climbed $5.80, or 1 percent, to $565 a metric ton on the Liffe exchange in London.
Brazil’s six main sugar ports, including the Port of Santos, had a record 111 vessels waiting to load 3.56 million metric tons as of July 20, according to Santos Associados Consultoria Ltda. and Unimar Agenciamentos Maritimos Ltda shipping agency.
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Tags: brazil, Datagro ltd, Port of Santos, raw sugar, Santos Associados Consultoria Ltda, Sucden Financial Ltd, Unimar Agenciamentos Maritimos Ltda, white sugar