Sugar futures may rise as supply tightens
Published: 09/03/2010, 8:28:29 AM
Sugar futures may rise on speculation that global supplies are tightening, according to Bloomberg.
Five of nine traders, analysts and brokers surveyed by Bloomberg News said raw sugar traded in New York will rally. Two predicted a drop, and two said the price will be little changed.
The "market is pretty strong, especially because of the perspective of really tight supply/demand for sugar worldwide," Bruno Lima, a risk-management consultant at FCStone in Campinas, Brazil, said in an e-mail, citing lower production in Brazil's Centre-South, the largest growing region.
Five of nine respondents in the Bloomberg survey said white sugar traded on London's LIFFE exchange will rally. Two said the price will decline, and two forecast little change. Refined sugar gained 2.6% this week to US$592.20 a metric ton.
Refined sugar's premium over raw sweetener will probably widen, according to six of nine surveyed. Two said the spread will narrow, and one forecast little change.