January 31, 2013

Sugar output is poised to drop for the first time since 2009 as farmers from Mexico to India cut plantings after the biggest two-year price slump since 1999.

Global output will decline to 165 million metric tons in the 2013-14 marketing year that will start in October in most countries, according to DZ Bank AG, Germany’s largest cooperative lender. Production will be a record 172.3 million tons in 2012-13 after three straight expansions, the U.S. Department of Agriculture estimates. Raw sugar in New York will rise 9.6 percent to average 20.5 cents in the fourth quarter, the mean of nine bank estimates compiled by Bloomberg shows.

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February 22nd, 2012

Sugar Futures – Raw sugar climbed for a fifth day in New York, the longest winning streak in a month, on speculation supplies will remain limited after a drought damaged the crop in Mexico. Coffee and cocoa slid in New York.

A drought in Mexico has reduced the crop to 5.1 million metric tons from a previous forecast of 5.3 million tons, an industry committee said on Feb. 10. Mexico now plans to approve imports of 250,000 tons of sugar, according to a proposal by the country’s economy ministry. With smaller-than-expected Mexican supplies, some sugar from Central America may be shipped to the U.S., limiting availability of sweetener to be delivered against the March contract in New York. Mexico traditionally supplies the U.S. and March raw sugar futures expire on Feb. 29.

“Despite a large recovery in inventories in 2011, prices have been recently supported by the slowdown in exports from Brazil in January and downgrades to Mexico’s sugarcane harvest following the ongoing drought,” Damien Courvalin, an analyst at Goldman Sachs Group Inc. in New York, wrote in a report e-mailed today.

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