Sugar declines in New York on ample world supplies

LONDON: Sugar futures fell for a third session on Monday in New York on signs that supplies will be ample as near-record output in Brazil’s main producing region extends a global surplus.

Sugar production in Brazil’s center south, the world’s top producing region, will be 34 million tonne to 35.2 million tonne in 2013-14, according to the average estimate of six mill owners surveyed by Bloomberg last week. The region produced an all-time high of 34.1 million tonne a year earlier.

World output in the 2013-14 season that starts in April may exceed demand by 3.8 million tonne, a fourth straight surplus, Brisbane, Australia- based researcher Green Pool Commodity Specialists says. “We remain bearish on sugar given our estimates for a global surplus,” Morgan Stanley analysts including Adam Longson said on Monday in an emailed report. “We believe that the bulk of bullish news is behind us and larger-than-expected production out of Brazil could push supplies even higher.”

Raw sugar for May delivery fell 0.4% to 18.13 cents a pound by 6:44 am on ICE Futures US in New York, after declining 3.7% last week. White sugar for May delivery was down 0.1% to $526.60 a tonne on NYSE Liffe in London. Cocoa for May delivery advanced 0.4% to $2,168 a tonne in New York. Cocoa for the same delivery month rose 0.6% to 1,454 pounds ($2,211) a tonne in London.