Jan. 11 (Bloomberg) -- Sugar prices rose, capping the biggest three-day rally since mid-October, on speculation that exports may be delayed from India, the world’s second-biggest producer. Coffee and cocoa also advanced.
Permits to ship 500,000 metric tons of sugar will be issued after Jan. 30, Farm Minister Sharad Pawar said yesterday. A panel of ministers will review the decision to allow the exports, a government official said today. Prices have doubled since June 30 as floods cut production in Australia and conflicting details emerged on India’s export prospects.
“With all these delays, the market is getting increasingly concerned about the extent of supplies one can expect from India,” said Michael McDougall, a senior vice president at Newedge USA in New York.
Raw sugar for March delivery gained 1.01 cents, or 3.2 percent, to settle at 32.75 cents a pound at 2:06 p.m. on ICE Futures U.S. in New York. In three sessions, the most-active contract jumped 8.3 percent. Earlier, the price reached 32.93 cents, the highest since Jan. 4. On Dec. 29, the commodity rose to 34.77 cents, a 30-year high.
In London, refined-sugar futures for March delivery advanced $31.90, or 4.1 percent, to $807.40 a ton on NYSE Liffe.
Brazil is the leading producer and exporter. Thailand is the second-biggest shipper, followed by Australia.
Arabica-coffee futures for March delivery gained 3.45 cents, or 1.5 percent, to $2.347 a pound in New York. In London, robusta-coffee futures for March delivery rose $55, or 2.7 percent, to $2,110 a ton.
Cocoa futures for March delivery climbed $53, or 1.8 percent, to $2,934 a ton in New York. In London, cocoa futures for March delivery rose 30 pounds, or 1.6 percent, to 1,970 pounds ($3,075) a ton.
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