Sugar has biggest 2-day rally since Oct; coffee slips
The EU may allow additional import quotas to boost supplies, and Russia may reduce its import tax on raw sugar in March, two months earlier than planned.
By Bloomberg |
NEW YORK: Sugar rose, capping the biggest two-day advance in three months, on signs that the European Union will increase purchases and demand may rise in Russia, a leading importer. Coffee and orange juice fell.
The EU may allow additional import quotas to boost supplies, and Russia may reduce its import tax on raw sugar in March, two months earlier than planned. Prices have more than doubled since the end of June on signs that global supplies will trail demand.
“The EU may try to cool off domestic sugar prices, and the potential of lowering the Russian duty is looking more realistic,” said Jeff Bauml, a senior vice president at RJ O’Brien & Associates, a broker in New York. “These are fundamental tones that could run the market up.” Raw sugar for March delivery gained 1.05 cents, or 3.2%, to settle at 34.18 cents a pound on ICE Futures US at 2 pm in New York, bringing the two-day rally to 7.3%, the most since early October.
Earlier, the price reached 34.54 cents, the highest for a most-active contract since December 29. On that date, the commodity climbed 34.77 cents, to a 30-yeer peak.
In London, refined-sugar futures for March delivery rose $25.40, or 3.2%, to $825.40 a tonne on NYSE Liffe. Russia’s raw-sugar imports advanced to 2.1 million tonne in 2010 from 1.44 million tonne a year earlier, the Institute for Agricultural Market Studies, based in Moscow, said Friday.
Arabica-coffee futures for March delivery fell 0.55 cent, or 0.2%, to $2.3695 a pound in New York. Robusta-coffee futures for March delivery dropped $6, or 0.3%, to $2,090 a tonne in London.
The EU may allow additional import quotas to boost supplies, and Russia may reduce its import tax on raw sugar in March, two months earlier than planned. Prices have more than doubled since the end of June on signs that global supplies will trail demand.
“The EU may try to cool off domestic sugar prices, and the potential of lowering the Russian duty is looking more realistic,” said Jeff Bauml, a senior vice president at RJ O’Brien & Associates, a broker in New York. “These are fundamental tones that could run the market up.” Raw sugar for March delivery gained 1.05 cents, or 3.2%, to settle at 34.18 cents a pound on ICE Futures US at 2 pm in New York, bringing the two-day rally to 7.3%, the most since early October.
Earlier, the price reached 34.54 cents, the highest for a most-active contract since December 29. On that date, the commodity climbed 34.77 cents, to a 30-yeer peak.
In London, refined-sugar futures for March delivery rose $25.40, or 3.2%, to $825.40 a tonne on NYSE Liffe. Russia’s raw-sugar imports advanced to 2.1 million tonne in 2010 from 1.44 million tonne a year earlier, the Institute for Agricultural Market Studies, based in Moscow, said Friday.
Arabica-coffee futures for March delivery fell 0.55 cent, or 0.2%, to $2.3695 a pound in New York. Robusta-coffee futures for March delivery dropped $6, or 0.3%, to $2,090 a tonne in London.
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