Soft commodities price watch: Sugar rallies on Brazilian fire
iNVEZZ.com, Friday, October 18th: Sugar futures today jumped to their highest level in almost a year in New York after warehouses that store the commodity in the Brazilian port of Santos were struck by fire. The blaze that started today at 6:15 am local time has affected three depots in the country’s biggest port, according to Codesp, the port managing company.
“We are going into the tail end of the Brazilian crush and production there has already been affected by rains,” Kona Haque, an analyst at Macquarie Group Ltd. in London, told Bloomberg by phone. “This is another problem they didn’t need and we could lose up to 300,000 tonnes. Speculators had already started to buy and the bullish news will fuel that short-term bullishness further,” she added, referring to the fire.
The raw sugar price for delivery in March on ICE Futures US in New York was three percent higher at $0.1956 a pound at 14:19 BST. Earlier today, the contract rose as much as 6.1 percent, the most since September 2011, to touch $0.2016 a pound, the highest price since October 22, 2012. Refined, or white sugar for delivery in December on NYSE Liffe in London, meanwhile, rallied as much as 4.6 percent.
As of 14:25 BST, the cocoa price for delivery in New York had plunged 1.77 percent to stand at $2,718 a metric tonne, while in London, the contract traded at £1,739 a tonne.
As of the same time, Arabica coffee for delivery in December on ICE was 0.17 percent lower at $1.1450 a pound. The Robusta coffee price for delivery in January on NYSE Liffe was slightly down at $1,637 a tonne.
**Wheat trims weekly loss**
!m[Grain futures poised for gain this week](/uploads/story/6175/thumbs/pic1_inline.jpg)
Grain futures have risen today, with wheat gaining for a second day to trim a weekly loss on speculation that the pace of exports from the US will be sustained even as global supplies climb to a record.
Wheat has dropped 11 percent this year as global production may jump 8.2 percent to a record 708.9 million metric tonnes, the US Department of Agriculture (USDA) forecast last month. The USDA hasn’t updated data on its website this month because of the partial US government shutdown from October 1 through October 16.
The wheat price for December delivery on the Chicago Board of Trade (CBOT) this morning gained as much as 0.8 percent to $6.9125 a bushel but remained headed for a 0.3-percent decline this week, the first loss in five weeks. As of 13:48 BST, the contract had climbed further and stood 1.53 percent higher at $6.9650 a bushel.
Elsewhere on the CBOT, the soybean price for November delivery rose as much as 0.56 percent to $13.0050 a bushel, set for the first week of gain in three. Among other grains, the corn price for delivery in December also climbed today, adding as much as 0.56 percent to 4.4550 a bushel, also set for advance this week.
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