July 14 (Bloomberg) -- Sugar prices rose to the highest in almost two weeks on speculation that India, the world’s largest consumer, will increase imports. Cotton climbed for the fourth straight session.
India may consider a proposal in 15 days to allow duty-free imports of raw sugar beyond Aug. 1, a government official said on July 10. Before today, sugar futures surged 49 percent this year as a drop in India’s output spurred the country to boost purchases, contributing to a global production deficit.
“India looks to be a strong buyer for weeks to come,” said Jack Scoville, a vice president at Price Futures Group in Chicago. “For now, the markets are enjoying bullish fundamentals.”
Raw-sugar futures for October delivery rose 0.12 cent, or 0.7 percent, to 17.66 cents a pound at 11:24 a.m. on ICE Futures U.S. in New York. Earlier, the price reached 17.85 cents, the highest for a most-active contract since July 1.
“I look toward sugar staging attempted advances” because of India’s demand, Jurgens H. Bauer, the head of brokerage Jurgens Bauer & Associates in New York, said yesterday in a report.
Prices may rise to 18 cents next week and reach 20 cents by the end of the year amid the shortfall in India, Michael Smith, the president of T&K Futures & Options in Port Saint Lucie, Florida, said yesterday.
On ICE, cotton futures for December delivery rose 0.19 cent, or 0.3 percent, to 62.85 cents a pound. The fiber climbed 6 percent in the previous three sessions.
Before today, cotton gained 28 percent this year as declines in global production outpaced slowing demand.
Sugar
Cotton
