Sugar output may exceed demand for a second year after farmers boosted planting as futures surged, pushing prices lower, Standard Chartered Bank said. That may lower costs for drinks makers like units of Coca-Cola Co.
Japan, the biggest corn buyer, may increase grain imports to guarantee food supplies after the nation’s strongest earthquake on record and a tsunami devastated the northeast coastal region, said Standard Chartered Plc.
Standard Chartered Plc recommended buying sugar futures for March 2015 delivery as dry weather in top producer Brazil threatens to cut output, potentially tipping the market into the first shortage in five years.
The six-month bear market in palm may be ending as declining output in Malaysia curbs a record glut, with Sime Darby Bhd., the largest producer, forecasting a rally in the world’s most-used cooking oil.
Cargill Inc. said that its sugar business took delivery of almost 1 million metric tons of the commodity as part of transactions involving expiring contracts at ICE Futures U.S. and handled by a unit of JPMorgan Chase & Co.