Sugar drops on rising output in Brazil

Sugar futures declined in trading Tuesday on news of rising output in Brazil, the world's largest producer of the commodity, and speculation that demand from China would ebb after the country increased the cost of borrowing.Sugar futures declined in trading Tuesday on news of rising output in Brazil, the world's largest producer of the commodity, and speculation that demand from China would ebb after the country increased the cost of borrowing.

China's central bank raised interest rates on Tuesday for the third time since October; China is battling a quickly accelerating inflation rate that in January reached its highest levels in 30 months. Raw sugar futures hit 30-year highs last week but could drop this year as Brazil moves to increase output, Lindsay Jolly, a senior economist at the International Sugar Organization, said in a statement.China's central bank raised interest rates on Tuesday for the third time since October; China is battling a quickly accelerating inflation rate that in January reached its highest levels in 30 months. Raw sugar futures hit 30-year highs last week but could drop this year as Brazil moves to increase output, Lindsay Jolly, a senior economist at the International Sugar Organization, said in a statement.

Shawn Hackett, the president of Hackett Financial Advisors, told Bloomberg that Brazil was helping to alleviate concerns that demand would outpace supply. "Brazil is going to have a record crop," he told Bloomberg. "There is simply not going to be a scarcity of sugar."Shawn Hackett, the president of Hackett Financial Advisors, told Bloomberg that Brazil was helping to alleviate concerns that demand would outpace supply. "Brazil is going to have a record crop," he told Bloomberg. "There is simply not going to be a scarcity of sugar."

Tuesday on ICE Futures U.S. in New York, sugar futures for March delivery fell 2.6 percent, or 0.8 cent, to close at 31.08 cents per pound; before Tuesday, prices surged 25 percent in the past year as inclement weather in sugar-growing nations like India and Australia hurt crops.  Tuesday on ICE Futures U.S. in New York, sugar futures for March delivery fell 2.6 percent, or 0.8 cent, to close at 31.08 cents per pound; before Tuesday, prices surged 25 percent in the past year as inclement weather in sugar-growing nations like India and Australia hurt crops.