Sugar rose for the first time in three days in New York on speculation more of the new cane harvest in Brazil, the world’s largest producer, will be used for ethanol. Coffee declined.
Sugar waiting to be loaded at ports in Brazil was 817,977 metric tons, according to figures e-mailed yesterday from Williams Servicos Maritimos Ltda. The line-up was 1.04 million tons a week earlier. Brazil’s cane harvest, used to make ethanol and sugar, usually starts in April, boosting supplies.
“This means that maybe more cane is being used for ethanol and that there may be less raws available in May,” said Keith Flury, an analyst at Rabobank International in London, by e-mail today. “At this time you might expect the line-up to keep growing.”
Raw sugar for May delivery jumped 0.7 percent to 17.62 cents a pound by 8:48 a.m. on ICE Futures U.S. in New York. Prices have dropped 9.7 percent this year with Brazil forecast by Sucres et Denrees SA to have a record cane crop.