Sugar prices rise on Brazil supply drop

NEW YORK: Sugar rose for a second day on signs that Brazil, the world's biggest grower and exporter, will reduce cane output and increase ethanol pro-duction. Cocoa fell, while cotton gained.

Almost all the sugar cane processed last week was used to make biofuel, according to Cepea, a University of Sao Paulo research group. The risk of crop damage from frost has increased in Brazil with the weakening of the La Nina weather pattern, an agronomist at the Somar Meteorologia said on March 28. Prices are up 43% in the past year.

"The market is bullish, and I expect the price to continue to rally," said Jimmy Tintle, an analyst at Transworld Futures in Tampa. Raw sugar for July delivery rose 0.27 cent, or 1.1%, to settle at 23.8 cents at 2 pm on ICE Futures US in New York on Thursday. The contract has dropped 3.6% this week. In London, refined-sugar futures for August delivery rose 40 cents, or 0.1% to $639.10 a metric tonne on NYSE Liffe. Cocoa futures for July delivery fell $18, or 0.6%, to settle at $3,088 a tonne in New York. Cotton futures for July delivery advanced 0.45 cent, or 0.3%, to $1.6751 a pound on ICE.