Heavy rain in Brazil is likely to delay harvests, Bloomberg reports.
Sugar producers in the globe's largest exporter of the commodity should expect to encounter logjams at ports, which will concentrate exports of the commodity during the peak season, according to Paulo Jose Mendes Passos, the commercial director at the third-largest producer of sugar and ethanol in Brazil.
"We may face bigger problems at ports this year," Passos of Acucar Guarani told the news service on March 28 from Sao Paulo. "Shipments will be concentrated in the July and October contracts, when the lineup tends to be much bigger."
Sugar futures closed on Wednesday up 0.70 percent, a 0.19 cent climb to $27.21 per pound.
Sugarcane output last year in the region that generates about 90 percent of Brazil's sugar and ethanol was impacted by a drought as production decreased. Shipments of sugar from a port called Santos climbed 20 percent in 2010 as compared to the year prior. Sugar-producing countries like Thailand, Australia, Russia and Pakistan also endured droughts.
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