Sugar gained the most in a week on signs that global supplies will be constrained. Cocoa declined, while coffee prices gained in London.
Sugar production will outpace demand by 2 million metric tons in the year that began this month, down from an earlier estimate of 3.22 million tons, according to Sergey Gudoshnikov, an economist at the London-based International Sugar Organization. Prices in New York have jumped 22 percent in October, heading for a fifth straight monthly gain.
“The long-term fundamentals remain strong,” said Bruno Lima, a risk-management consultant at FCStone in Campinas, Brazil. “There has not been much good news about production.”
Raw sugar for March delivery gained 0.63 cent, or 2.3 percent, to 28.59 cents a pound to close at 2 p.m. on ICE Futures U.S. in New York. Today’s gain was the biggest since Oct. 19.
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