Sugar Futures Plunge

On October 12, 2012, in sugar futures trading news report, by Infinity Trading

October 12, 2012

Raw sugar futures on ICE plunged almost 4 percent on Thursday as funds and speculative investors continued to liquidate positions amid talk that importers may be cancelling cargoes. Coffee hit one-month lows and cocoa plumbed levels last seen in July amid plentiful supplies and sluggish consumption.

Reinforcing concerns about weakening demand was widespread talk about sugar washouts – where buyers give up the obligation to take delivery by paying a penalty – which centred on China and India, dealers said. Buyers may be walking away from hundreds of thousands of tonnes worth of contracts after sup ply concerns that sent prices a s high as 24 cents a lb in mid-July dissipated. Prices have since plunged 15 percent.

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September 25th, 2012

Sugar futures gained the most in two weeks on speculation that adverse weather in Brazil, the world’s top exporter, and India may limit global supplies. Cocoa and coffee also advanced.

Sugar-cane output in India, the second-biggest grower, will drop 6.2 percent in the year starting Oct. 1 as dry weather cuts yields, Farm Minister Sharad Pawar said yesterday. Growing regions in Brazil will get rain this week that may delay fieldwork, Sao Paulo-based Somar Meteorologia said.

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September 19th, 2012

Sugar Futures – China, the biggest sugar importer, may harvest its second-largest crop after favorable weather spurred farmers to increase planting, potentially cutting overseas purchases and widening a global surplus. Prices fell.

Production may climb 19 percent to 13.7 million metric tons in the season starting October, according to the median estimate in a Bloomberg survey of nine analysts and traders. Output totaled 11.5 million tons this season, according to the China Sugar Association. The crop reached a record 14.8 million tons in 2007-2008, data from the association show.

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September 11th, 2012

Sugar Futures – Sugar, trading near a two-year low, is set to pile up in producing countries next season as a lack of demand amid a global surplus forces growers to hold back supplies, according to Kingsman SA.

“Sellers will struggle to get buyers for raw sugar in the season starting October,” Jonathan Kingsman, chief executive officer of the Lausanne, Switzerland-based researcher and broker, said in an interview in New Delhi. “Indonesia will be the biggest raw sugar importer in the absence of Russia and China. Prices will remain under pressure in the next six to 12 months on excessive supplies.”

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July 30th, 2012

Sugar Futures – Buyers of sugar from Brazil, the world’s largest producer, are paying a bigger premium for their sweetener after futures prices fell and supplies for immediate shipment remain limited, according to Swiss Sugar Brokers.

Raw sugar for loading in August at the port of Santos, Brazil’s biggest, was offered for sale at a premium of 0.4 cent a pound to the price of the October contract on ICE Futures U.S. in New York, the broker said in a report e-mailed today. That compares with a premium of 0.05 cent to 0.1 cent a pound on July 22, data from the broker showed. At the port of Paranagua, the second biggest, sweetener was at a premium of 0.25 cent a pound to the exchange price, according to the report.

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July 6th, 2012

Sugar Futures – Sugar traders are the most bullish in six months after prices moved to within five percentage points of exiting a year-long bear market as rain delayed cane processing in Brazil, the biggest producer.

Nine of 11 analysts surveyed by Bloomberg said they expect raw sugar to keep rallying next week and two were bearish, the highest proportion of bulls since Jan. 6. Futures reached an 11- week high of 22.69 cents a pound in New York yesterday. Hedge funds increased wagers on rising prices by 29 percent to the highest since April in the week ended June 26, U.S. Commodity Futures Trading Commission data show.

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June 28th, 2012

Sugar Futures – The worst start to the monsoon season in India in three years is threatening crops from rice to sugar cane, stoking concern that the nation may limit exports to preserve supplies. Soybean futures in India climbed to the highest since 2003 and corn rose to a five-month high.

Rainfall from June to September, which represents 70 percent of annual amount, may be below normal with the main cane-growing regions getting less rain than required, said Michael Ferrari, a commodity director and senior scientist at Falls Church, Virginia-based Computer Sciences Corp. (CSC) Rain is 23 percent below average since the season started on June 1, according to the India Meteorological Department.

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June 15th, 2012

Sugar futures raw rose the most in more than a week on signs that rains will hamper crops in Brazil, the world’s top producer. Coffee gained, while cocoa slid.

Rains are forecast to last through the beginning of next week, according to Marco Antonio dos Santos, an agronomist at weather forecaster Somar Meteorologia in Sao Paulo. Rainfall has slowed Brazil’s sugar harvesting and spurred an 18 percent drop in the amount of cane processed by mills in the second half of May, Unica, an industry group, said yesterday.

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May 29th, 2012

Sugar futures raw fell for the first time in three sessions on renewed concern that global output will exceed demand as exports expand from Brazil, the world’s biggest producer. Cocoa rose and coffee declined.

Sugar exports from Brazil are more profitable than sales in the domestic market after the real weakened against the dollar over the past three months, according to Cepea, a University of Sao Paulo research group. The advance in Brazil’s center south’s harvest “should weaken prices” as weak demand in the Northern Hemisphere “prompts a global trade surplus into the third quarter,” Hussein Allidina, Morgan Stanley’s head of commodities research, wrote in a report e-mailed today.

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May 22nd, 2012

Sugar Futures – A delay in harvesting the sugar cane crop in Brazil will see the world’s largest producer lose market share in China, set to be one of the season’s biggest importers, as Thailand increases its shipments to the Asian nation.

Thailand is forecast to ship 600,000 metric tons of raw sugar to China in the first half of the year, according to Thai Sugar Trading Corp., the country’s largest exporter. That would be the most since at least 2005 and almost a fifth of all the sugar China will need to buy this year. Last year, its shipments to China totaled 277,572 tons of sweeteners, according to Thailand’s Office of Cane & Sugar Board.

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