Sugar rose for a second session on concern that world production will trail demand, further eroding inventories. Coffee gained, while cocoa fell. Sugar output in India, the world’s second-largest grower, may expand less than estimated in the current crop year, Balrampur Chini Mills Ltd. said today. Rabobank Australia Ltd. yesterday forecast a global production deficit. Prices have more than doubled since May as adverse weather damaged crops. “We still have supply concerns and strong demand,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa. “Everyone is watching for India’s output.” Raw sugar for March delivery climbed 0.41 cent, or 1.3 percent, to 33.05 cents a pound at 11:17 a.m. on ICE Futures U.S. in New York. In London, refined-sugar futures for May delivery gained $11.20, or 1.5 percent, to $780.70 a metric ton on NYSE Liffe. Indian production may be as much as 24.5 million tons in the year ending Sept. 30, according to Balrampur, the nation’s second-largest sugar company, down from a November forecast of 25 million tons. Brazil is the world’s biggest producer. Flooding followed by Tropical Cyclone Yasi reduced Australian estimates by about 800,000 tons, said Wayne Gordon, a Rabobank analyst. Sugar output may be 3.5 million tons from the June-to-December harvest this year, compared with 3.6 million tons from the previous crop and below expectations of 4.2 million to 4.3 million tons, according to Rabobank. Australia is the third-largest exporter, after Brazil and Thailand. Coffee, Cocoa Arabica-coffee futures for March delivery advanced 2.05 cents, or 0.8 percent, to $2.5135 a pound on ICE. In London, robusta-coffee futures for March delivery rose $13, or 0.6 percent, to $2,220 a ton. Hedge funds and money managers increased their bullish bets on coffee futures by 15 percent to 36,353 New York contracts during the week ending Feb. 1, Commodity Futures Trading Commission data show. It was the largest gain since Oct. 19. Cocoa futures for May delivery fell $27, or 0.8 percent, to $3,237 a ton on ICE. In London, cocoa for March delivery slid 24 pounds, or 1.1 percent, to 2,115 pounds ($3,407) a ton. To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net; To contact the reporter on this story: Chris Prentice in New York at Cprentice3@bloomberg.net

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