Survey of Traders: Sugar futures could fall next week on increased supplies

on Friday, April 15, 2011

Survey of Traders: Sugar futures could fall next week on increased supplies  Like many commodities, sugar futures have climbed over the past few years as inclement weather hurt crops in Brazil and India, two of the biggest producers in the world. In India, the country moved to halt exports last year amid a reduction in stockpiles, sending sugar futures soaring. Nonetheless, reports indicate that supplies in Brazil could increase, driving prices down. 

According to analysts, sugar futures could fall next week on the uptick in inventories. Brazil, the world's biggest sugar producer, is expected to post an increase in output as beneficial weather has helped farmers reap a larger-than-expected harvest. Bloomberg News polled 16 traders about the potential for sugar futures to fall and 12 of them asserted prices could fall in New York next week.

Of the traders surveyed, only four projected prices to rise next week. Before Friday, sugar futures declined 7.3 percent for the week on steadily increasing global inventories. Sugar traded in London would fall next week, according to 11 of the traders; four picked sugar futures to climb, while one person forecast they'd remain relatively unchanged.

On the New York Mercantile Exchange on Friday, sugar futures for July delivery were up 1 percent to trade at 23.3 cents per pound.

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