Concerns about inclement weather in Brazil drove sugar futures to their top price in about six weeks on Tuesday, according to Bloomberg.
Center-south, the top-growing region of the South American nation that is the globe's top supplier of the soft commodity, is forecast to become colder later this week, according to a MDA Weather Services of Maryland. The sweetener is in peril as its crop might be further damaged.
"The weather in Brazil has captured the sugar market's attention again with forecasts for some rainy, cool weather in the upcoming period," states a Monday report penned by president Judy Ganes-Chase with J. Ganes Consulting LLC, according to Bloomberg. "This could cause some further disruptions to the harvest, but I don't see it as a need to wave bull flags yet."
At 8:47 a.m. on Tuesday, sugar futures were even and checked in at 0.1716 cents per pound.
Reuters reports that sugar futures' advance also is linked with confidence about tapering oversupplies. On Monday, the sweetener advanced 1.2 percent and pushed to its top value on commodity markets since the end of this past June.
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