Sugar futures climbed for the seventh consecutive session on Friday, headed toward the longest rally in 15 months as supplies tighten and demand remains strong, Bloomberg reports.
According to the news source, sugar output in Mexico – the sixth-largest producer in the world – could potentially miss analysts' predictions as crops have been threatened by powerful storms. What's more, Brazil's Center South, the top sugar-producing region, reported a 6.8 percent decrease in sugar production this year.
"There is talk of a near-term shortage due to the slow pace of the Mexican harvest," Jack Scoville, vice president for Price Futures Group in Chicago told the media outlet.
Scoville added Brazil's crop may not be able to recover due to the region's recent foul weather.
At 2:00 p.m. sugar futures were up 1.45 percent, or 0.36 cents, to 25.22 cents per pound, according to Bloomberg.
Currently, the International Sugar Association estimates the global sugar surplus for the 2011-2012 growing season to be 5.17 million metric tons, up from an earlier forecast of 4.46 million tons, according to Inside Futures.
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