Sugar rose to an eight-week high as production may fall short of expectations in Brazil, the world’s top grower. Cocoa and coffee also gained.
Sugar output in Center South, Brazil’s main producing region, will total an estimated 33 million metric tons this year amid lower crop yields, according to Raizen, a cane venture between Cosan SA Industria & Comercio and Royal Dutch Shell Plc. Unica, an industry group, forecast output at 34.6 million tons in March.
“Brazilian output is causing the whole market to rally,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “That is the big news right now.”
Raw sugar for July delivery advanced 0.6 cent, or 2.5 percent, to settle at 24.95 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price touched 25.18 cents, the highest since April 13.