Sugar prices could rally to 23 cents to 24 cents a pound on the risk of production estimate cuts in Thailand, India and the European Union just as importing countries rebuild stockpiles, according to Macquarie Group Ltd.
Money managers raised bullish bets on cocoa traded in London to a record as global shortages loom for the 2013-14 season that started this month, according to data from NYSE Liffe, the derivatives arm of NYSE Euronext.
Sugar may need to drop further to spur millers in Brazil, the world’s largest producer, to make more ethanol at the expense of the sweetener when the 2013-14 season starts there in April, according to Macquarie Group Ltd.
Sugar fell for a third day in New York as millers in Brazil, the world’s largest producer, are set to advance sales to take advantage of a weaker local currency as the 2013-14 harvest there progresses. Cocoa gained.
Sugar output in India, the world’s second-biggest producer and largest consumer, will fall for the first time in four years in the season starting in October because of dry weather, according to Macquarie Group Ltd.
Robusta coffee climbed for the first time in eight sessions on speculation stockpiles will continue to fall, prompting roaster buying before the next crop starts in October in top-grower Vietnam. White sugar rose.
Arabica coffee fell for a second day in New York as the harvest advanced in Brazil, the world’s leading producer, and a weaker local currency prompted growers to sell more in the futures market. Raw sugar declined.