Sugar May Drop Next Week on Confidence in Brazil Supplies, Survey Shows

Sugar may fall next week on bets that supply will rise in Brazil, the world’s biggest producer.

Twelve of 16 traders, analysts and brokers surveyed by Bloomberg News said that raw sugar traded in New York will decline, while four said prices will gain. Before today, the commodity fell 7.3 percent this week to 23.06 cents a pound.

Eleven respondents said refined sugar on London’s NYSE Liffe exchange will slump, four said it will rise, and one said it would be little changed. Through yesterday, the price slid 2 percent this week to $638.40 per metric ton.

Refined sugar’s premium over raw sweetener may widen next week, according to 11 respondents. Three said the spread would narrow, and two forecast little change.

Bullish on raw sugar:     4      Bearish:   12    Neutral:  0
Bullish on refined sugar: 4      Bearish:   11    Neutral:  1
Widening refined premium: 11      Narrow:    3     Neutral: 2

(Source: http://www.bloomberg.com/news/2011-04-14/sugar-may-drop-on-confidence-in-brazil-supply-survey-shows.html)