Conjecture about production lagging behind projections in Brazil pushed sugar futures to their top value in 21 days on Tuesday, according to Bloomberg.
Center South, the primary sugar-growing region of the nation that is the top-growing country in the world, is slated to produce roughly 32 million metric tons for the season starting in April, according to the nation's largest sugar-trading cooperative. The original forecast was 34 million tons in February, prior to dry weather damaging crops.
"The market is beginning to believe there might be an 'issue' with the health of the Center South crop in Brazil and adjusts its trading range accordingly," states a report penned by senior vice president Michael McDougall with Newedge Group in New York, according to Bloomberg.
At 2 p.m. on Tuesday, sugar futures dropped 0.19 percent, a .05 cent slip to 25.61 cents per pound.
Reuters reports the sweetener's upward drive was prompted by commercial and fund buying, according to traders. After notching highs, the sugar market was impacted by producer sales, brokers said.
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