Sugar futures increased Friday morning on reduced output estimates from the globe's top producing region, according to a consultancy.
Bloomberg reports Center South in Brazil will generate 498 million metric tons for the 2011-2012 harvest, a reduction from the 525 million metric tons forecast last month following the influence of inclement weather in the region, Kingsman stated. Last year's drought gave way to this year's heavy rains.
"The reduction of the Center South Brazil production this year has taken many of us by surprise," managing director Jonathan Kingsman of the consulting firm noted in a Friday report.
At 9:10 a.m. on Friday, sugar futures slipped 0.3 percent, a .0009 cent slip to 29.57 cents per pound.
Thus far during this year's harvest, Center South farmers have reaped more than 297 million metric tons of cane sugar, according to Unica, a sugar industry advocacy organization. That figure represents a 12 percent decline as compared to this time in 2010. Regional mills have generated more than 17 million tons of sugar this year, a reduction of 11 percent from last year's figures.
ForexPros reports the soft commodity's rise in value on Thursday was attributable to Brazilian shortfalls and would be offset by increased production in Europe and Asia.
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