Refined sugar’s premium over raw sugar, which climbed to a record last week, may plunge as much as 33 percent by the fourth quarter as Brazil, the biggest exporter, increases production, Newedge USA LLC said.
Raw sugar may climb 19 percent by March if dry weather in Brazil, the world’s biggest producer, persists, amid growing demand from countries including China, according to broker Newedge USA.
Sugar rose on renewed demand following a 3.1 percent slump in the previous session. Cocoa and coffee dropped in New York.
Raw sugar may climb as much as 20 percent this month if dry weather in Brazil’s Center South, the world’s largest producing region, persists, according to broker Newedge USA.
India, the world’s biggest sugar producer after Brazil, will introduce a subsidy on raw sweetener exports to boost shipments amid a domestic glut, a government official said.
Hedge funds got more bullish on sugar before prices climbed to the highest since October as dry weather threatened supply from India to Brazil.
Sugar prices rose for the fourth straight session on speculation that India, the world’s second- biggest producer, may delay new exports. Arabica coffee dropped from the highest in 13 years.