By Joe Richter and Isis Almeida
- Sep 2, 2011 2:37 PM ET
Declines Amid Record Supplies; Coffee Drops; Cocoa Rises
Sugar fell to a two-week low on signs that world supplies
will top demand as production climbs to a record. Coffee
also declined, while cocoa gained.
Global sugar output will exceed demand by 4.2 million
metric tons in the season starting in October, the International
Sugar Organization said yesterday. World supply will
climb to an all-time high of 172.4 million tons even
as output drops in Brazil, the top global producer,
the group said.
“Sugar has massive surpluses coming,” Shawn Hackett,
the president of Hackett Financial Advisors Inc., said
in a telephone interview from Boynton Beach, Florida.
“It has a tough fundamental road to get over between
now and the end of the year.”
Raw sugar for October delivery dropped 0.41 cent, or
1.4 percent, to settle at 29.18 cents a pound at 2 p.m.
on ICE Futures U.S. in New York. Earlier, the commodity
touched 28.85 cents, the lowest since Aug. 19. The sweetener
dropped 3.4 percent this week, the biggest decline since
Arabica-coffee futures for December delivery fell 1.7
cents, or 0.6 percent, to $2.8805 a pound on ICE. Before
today, the commodity had risen for eight straight sessions,
the longest rally since November 2004.
Cocoa futures for December delivery rose $23, or 0.7
percent, to $3,098 a ton in New York.
In London, refined sugar and robusta coffee slumped,
while cocoa rose.