Sugar Futures Rebound as India May Delay Exports; Arabica Coffee Declines.

Sugar prices rose for the fourth straight session on speculation that India, the world’s second- biggest producer, may delay new exports. Arabica coffee dropped from the highest in 13 years.

The Indian government will review its export policy at the end of January, Farms Minister Sharad Pawar said last week. The government had authorized 500,000 metric tons for export amid projections that output will exceed consumption for the first time in three years. Sales from India have been regulated since 2009. Earlier, prices fell as much as 2.9 percent.

“Any decent pullback will most likely find buying support as the supply situation from Brazil and India is thin,” Michael McDougall, a senior vice president at Newedge USA, said in a report. “It looks like India could delay releasing exports.”

Raw sugar for March delivery rose 0.11 cent, or 0.3 percent, to close at 33.13 cents at 2 p.m. on ICE Future U.S. The price gained 6.9 percent in four sessions and yesterday reached 33.65 cents, the highest for a most-active contract since January 1981. Brazil is the biggest producer.

“The supply situation could be tight until the Brazilian new crop makes its expected delayed appearance in late April or early May,” McDougall said. Freezing weather may hurt output in the European Union, he said.

In London, refined-sugar futures for March delivery dropped $25.80, or 3.2 percent, to $784.50 a ton on NYSE Liffe. Yesterday, the price reached $815, the highest since at least January 1989.

Coffee, Cocoa

Arabica-coffee futures for March delivery fell 3.65 cents, or 1.6 percent, to $2.302 a pound on ICE. Earlier, the price jumped to $2.4225, the highest since June 1997.

Coffee has surged 69 percent this year, partly on concern that heavy rains curbed supplies in Brazil, the largest producer.

In London, robusta-coffee futures for March delivery advanced $2, or 0.1 percent, to $2,012 a ton.

Cocoa futures for March delivery dropped $5, or 0.2 percent, to $2,970 a ton in New York. In London, the March contract was little changed at 2,009 pounds ($3,088 a ton).

Source : bloomberg.com