Sugar Jumps on Brazil Crop Concern, Chinese Demand; Coffee Gains

Sugar rose in London to the highest in a month on concern the crop in Brazil, the biggest producer, will fall below forecasts, and as China increased imports. Coffee and cocoa also gained.

Sugar output in Brazil’s Center South, the world’s largest producing region, may fall below 31.5 million metric tons, according to Commerzbank AG. Last year the area produced 33.5 million tons of sugar, according to Sao Paulo-based industry group Unica. In China, sugar imports were 256,474 tons in July, compared with 110,799 tons in June, the customs office said today.

“In Brazil, we are seeing increasing confirmation of disappointing crop results,” Commerzbank analyst Carsten Fritsch said in a report today.

White, or refined, sugar for October delivery rose $23.70, or 3 percent, to $810.60 a ton by 10:51 a.m. on NYSE Liffe in London, the highest since July 22. Raw sugar for October delivery advanced 0.32 cent, or 1 percent, to 31.28 cents a pound on ICE Futures U.S. in New York.

Sugar content in Brazil’s Center South continues to fall below expecations, industry researcher Datagro Ltd. said in an e-mailed statement Aug. 18.

Robusta for November delivery rose $33, or 1.4 percent, to $2,333 a ton in London. Arabica coffee for December delivery rose 0.7 cents, or 0.3 percent, to $2.706 a pound in New York.

Cocoa for December delivery rose 12 pounds, or 0.6 percent, to 1,901 pounds ($3,134) a ton in London. Cocoa for December delivery was up $13, or 0.4 percent, at $3,017 a ton in New York.