The price of sugar jumped on Tuesday, while other soft commodities fell in the day’s trading. Pakistan may be forced to import raw sugar, the nation’s industries ministry said, rather than buying expensive white sugar.
Pakistan has been devastated by lethal, destructive floods which have killed over 2,000 people, displaced 20 million people and flooded more than a million acres. Famine and cholera are widely feared, and essential crops have been lost.
Among those crops is sugar, which Pakistan typically exports. Raw No. 11 sugar futures rose 2.32 percent to 19.38 cents per pound.
Coffee futures lost ground as Brazilian crops arrived in the U.S., increasing supply. “Tremendous amounts of newly harvested coffee crop from Brazil should start to hit American shores any day now,” Spencer Patton, the founder and chief investment officer of Steel Vine Investments, told Bloomberg News. “That will certainly keep a lid on prices.”
Cocoa futures dropped on the Liffe, falling 1.26 percent to £2,077 per metric ton, but rose by 0.3 percent to $2,898 per metric ton in New York.
Cotton declined 0.19 percent to 83.86 cents per pound.
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