Raw Sugar Futures Fall From Two-Week High Following Sales by Speculator

Sugar prices declined on sales by speculators following a rally to a two-week high.

The sweetener had gained on signs that crop damage from floods in Pakistan and drought in Russia would spur demand for imports. Pakistan may make a final decision on the quantity of the commodity to be imported by December, to make up for its production shortfall, the industries ministry said today. Russia’s Sugar Producers’ Union has cut its beet-crop forecast by 20 percent.

“There’s some profit taking,” said Ricardo Scaff, a trader at Rabobank International in New York. “The market is facing resistance as we approach 20 cents.”

Raw sugar for October delivery declined 0.25 cent, or 1.3 percent, to 19.17 cents a pound at 12:39 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 19.72 cents, the highest level since Aug. 2. The most-active contract climbed 6.5 percent last week on speculation that demand would increase.

Refined-sugar futures for October delivery rose $1.30, or 0.2 percent, to $5551.20 a ton on the Liffe exchange in London.