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Sugar Falls on Rising Brazil Production

Sugar prices fell Tuesday after a Brazilian sugar industry trade group said mills there processed nearly 20% more cane there than the year before.

Sugar futures for March delivery were down 0.9% at 15.17 cents a pound on the ICE Futures U.S. exchange. Sugar has been trading near its highs for the year as speculation has grown that this year's crop could strain supplies.

Brazil'sUnica said mills in the country's center-south growing region, which grows 90% of Brazil's sugar cane crop, crushed 18.7 million tons of cane in the second half of November, an increase of 18.9% from a year earlier. Still, the group said less actual sugar was produced than a year earlier, as the nation allocated a higher percentage of output to ethanol, a key source of fuel there. Brazil is the world's largest producer and exporter of sugar.

 

 

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