Sugar mills in India’s biggest growing region will extend a shutdown to curb losses after the government retained cane prices at a record high, potentially curbing output in the world’s second-largest producer.
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 futures jumped to the highest in almost a year after a fire left four injured and six warehouses “totally compromised” at the biggest port in Brazil, the world’s largest producer and exporter.
The U.S. Department of Agriculture took 85,000 short tons of sugar as payment for $34.5 million of loans to processors that came due last month and said there is “substantial risk” of more forfeitures after government measures failed to erase a domestic glut.
Cocoa futures reached a 23-month high as ample rains threaten to slow already shrinking supplies from West Africa, the world’s biggest growing region. Sugar, coffee and orange juice also advanced, while cotton slid.