Sugar falls on signs of increased output in Brazil, India

Sugar futures fell to their lowest levels in nearly three months on signs of increasing output from Brazil and India, the world's two biggest producers.Sugar futures fell to their lowest levels in nearly three months on signs of increasing output from Brazil and India, the world's two biggest producers.

The Indian government said this week the country is debating exporting 500,000 metric tons of sugar this week. Datagro, a research company, said Tuesday that output in Brazil's Center South growing regions would climb to 35.1 million metric tons this year - up from 33.5 million metric tons the year prior. Increased output from Brazil and India could help replenish quickly dwindling global stockpiles.The Indian government said this week the country is debating exporting 500,000 metric tons of sugar this week. Datagro, a research company, said Tuesday that output in Brazil's Center South growing regions would climb to 35.1 million metric tons this year - up from 33.5 million metric tons the year prior. Increased output from Brazil and India could help replenish quickly dwindling global stockpiles.

Fain Shaffer, the president of Infinity Trading Corp., told Bloomberg sugar could fall if output increases as expected. "If the crops look better, sugar could head even lower," he affirmed. "This is supportive news for the bears."Fain Shaffer, the president of Infinity Trading Corp., told Bloomberg sugar could fall if output increases as expected. "If the crops look better, sugar could head even lower," he affirmed. "This is supportive news for the bears."

On ICE Futures U.S. in New York on Wednesday, raw sugar for May delivery declined 3.4 percent, or 1 cent, to trade at 29.9 cents per pound.On ICE Futures U.S. in New York on Wednesday, raw sugar for May delivery declined 3.4 percent, or 1 cent, to trade at 29.9 cents per pound.

In November, sugar futures touched 36.08 cents per pound, the highest level for a most-active contract since November 1980.  In November, sugar futures touched 36.08 cents per pound, the highest level for a most-active contract since November 1980.