Sugar declines on reports of increased output from Brazil

Sugar futures extended their recent fall in trading Tuesday on signs that supplies from Brazil, the world's biggest producer, may increase.Sugar futures extended their recent fall in trading Tuesday on signs that supplies from Brazil, the world's biggest producer, may increase.

Though inclement weather fueled sugar's precipitous rise earlier in the year, crops in Brazil's main growing area are forecast by Cosan SA Industria & Comercio to total about 575 million metric tons in 2011. Output at that level would mark a 3.4 percent increase from the year prior, according to industry data. Sugar futures slumped to 27.85 cents per pound Tuesday - the lowest price for a most-active contract since December 2.Though inclement weather fueled sugar's precipitous rise earlier in the year, crops in Brazil's main growing area are forecast by Cosan SA Industria & Comercio to total about 575 million metric tons in 2011. Output at that level would mark a 3.4 percent increase from the year prior, according to industry data. Sugar futures slumped to 27.85 cents per pound Tuesday - the lowest price for a most-active contract since December 2.

Jimmy Tintle, an analyst at Transworld Futures, told Bloomberg the newest crop projections out of Brazil helped allay worries that global demand would eclipse supplies. "Any time supply news like this comes out, you'll see weakness in the market," he said.Jimmy Tintle, an analyst at Transworld Futures, told Bloomberg the newest crop projections out of Brazil helped allay worries that global demand would eclipse supplies. "Any time supply news like this comes out, you'll see weakness in the market," he said.

Tuesday on ICE Futures U.S. in New York, raw sugar for May delivery fell 0.57 cent to settle at 28.21 cents per pound at 2 p.m. Tuesday marks the fourth consecutive decline for the commodity, its longest slide since early October.Tuesday on ICE Futures U.S. in New York, raw sugar for May delivery fell 0.57 cent to settle at 28.21 cents per pound at 2 p.m. Tuesday marks the fourth consecutive decline for the commodity, its longest slide since early October.

On February 2, sugar futures hit a 30-year high of 36.08 cents per pound.  On February 2, sugar futures hit a 30-year high of 36.08 cents per pound.