BLBG: Sugar Rises in London, Ending Losing Streak, as Dollar Weakens
Sept. 22 (Bloomberg) -- White sugar rose in London, ending a three-day losing streak, as a weaker dollar boosted commodities’ appeal as an alternative investment.
The Dollar Index, a six-currency gauge of the greenback’s performance, fell for the first time in three days, sliding as much as 1 percent. It has dropped 6.4 percent this year. Raw materials from crude oil to copper gained, lifting the 24- contract S&P GSCI commodity index as much as 1.6 percent.
“There is the benefit from a weaker dollar,” Nicholas Snowdon, an analyst with Barclays Capital in London, said in a phone interview. “It could be seen as a sign of risk appetite improving.”
White, or refined, sugar for December delivery advanced $5, or 0.9 percent, to $578 a metric ton on the Liffe exchange at 11:45 a.m. local time. The contract rose as much as 1.4 percent, the biggest intraday gain since Sept. 16. Raw-sugar futures for October delivery climbed 0.9 percent to 22.06 cents a pound on ICE Futures U.S. in New York.
Sugar also has been lifted this year by the driest June in 83 years in India and too much rain in Brazil, crimping supply from the world’s biggest growers. Production of the sweetener will trail demand by 8.4 million tons in the year ending next September, the International Sugar Organization said Sept. 2.
“There is still plenty on a fundamental basis to support sugar,” Snowdon said.
Among other agricultural commodities traded on Liffe, robusta coffee for November delivery fell $16, or 1.1 percent, to $1,463 a ton, sliding for a third day.
Cocoa for December delivery climbed 32 pounds, or 1.6 percent, to 2,035 pounds ($3,322) a ton.
To contact the reporter on this story: M. Shankar in London at mshankar@bloomberg.net
