Sugar Price May Extend Gain Next Week as Brazil Output Slows, Survey Shows

Sugar may rise next week on signs that output is dropping in Brazil, the world’s biggest grower.

Seven of 11 traders, analysts and brokers surveyed by Bloomberg News said that raw sugar traded in New York probably will advance. Two forecast a loss, and two said prices would be little changed. Before today, futures for July delivery gained 1.7 percent this week, closing yesterday at 21.82 cents a pound.

Seven of 11 respondents said refined sugar on London’s NYSE Liffe exchange will advance. Two said prices will fall, and two expected little change. Through yesterday, futures gained 2.6 percent this week to $618.50 a metric ton.

Refined sugar’s premium over raw sweetener probably will widen next week, according to seven of 11 respondents. Three forecast little change, and one said the spread will narrow.

Bullish on raw sugar: 7       Bearish: 2      Neutral: 2
Bullish on refined sugar: 7   Bearish: 2      Neutral: 2
Widening refined premium: 7   Narrow: 1       Neutral: 3

Source: http://www.bloomberg.com/news/2011-05-19/sugar-price-may-extend-gain-as-brazil-output-slows-survey-shows.html