Sugar fell to the lowest in more than seven months on forecasts for record production in Thailand, the world’s second-biggest exporter.
Sugar output in the Asian nation will reach 9.47 million metric tons, after rainfall increased yields, boosting exports to an all-time high, the country’s Office of the Cane & Sugar Board said last week. That
compares with an earlier projection for record production of 9.11 million tons. Last month, the commodity retreated 18 percent, the third straight drop, as supply concerns eased.
“The Thai news is very bearish,” said Ricardo Scaff, a trader at Rabobank International in New York.
Raw sugar for July delivery declined 0.38 cent, or 1.7 percent, to settle at 21.87 cents a pound on ICE Futures U.S. in New York. Earlier, the price touched 21.45 cents, the lowest since Sept. 10. Today’s decline is the sixth straight, the longest slump since March 2009.
The commodity has slumped 32 percent this year, the worst performer among 19 raw materials in the Thomson Reuters/Jefferies CRB Index.