Futures Market News
Sugar soars, cocoa falls
Jun 02, 2011 12:56 PM
Heavy output of sugar to be shipped from Brazil pushed up the soft commodity's futures on Thursday morning, Bloomberg reports.
Losses from Wednesday were overcome by the logjam exported from the globe's top producer of sugar. A strengthening demand for the sweetener is rising from Islamic nations as the Muslim fasting period of Ramadan approaches in August.
"The lagging crush remains likely a major supporting aspect for international prices," according to a Wednesday report by analyst Keith Flury of Rabobank International in London. "Lower cane quality due to weather conditions and a delayed start this season means production will have to ramp up quickly to achieve output estimates."
But cocoa futures slipped in value, Reuters reports, attributing the drop in price to strengthening shipments of the soft commodity by the Ivory Coast, which is the globe's top supplier of cocoa. The West African nation lifted a ban on exporting cocoa, prompting a surplus.
At 1:29 p.m. on Thursday, sugar futures climbed 4.81 percent, a 0.0108 cent rise to 0.2354 per pound. Cocoa futures were down 1.96 percent, a $58 drop to $28.95 per metric ton.
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