Feb. 22 (Bloomberg) -- Sugar rose, capping the first weekly gain in three, on concern that a record backlog at Brazil’s Port of Santos will cut supply from the world’s top producer and exporter. Coffee and orange juice also gained.
Brazil ports have 192 ships waiting to load 10.8 million metric tons of soybeans, corn, wheat and rice, compared with 90 ships waiting to load 4.1 million tons a year earlier, researcher SA Commodities said today. More time spent loading the extra grain supplies may delay sugar shipments. Exports may also be disrupted if dock workers in the country decide to go on a strike in a protest over job security.
“There’s a 12-kilometer line into Santos,” Michael McDougall, the head of the Brazil desk at Newedge Group in New York, said in a telephone interview. “The terminals are concentrating on grain deliveries. It’s keeping Brazilian sugar away from delivery.”
Raw sugar for delivery in May rose 1.4 percent to settle at 18.15 cents a pound at 1:42 p.m. on ICE Futures U.S. in New York. The price gained 2.3 percent gain for the week.
“Most of the sugar goes through Santos,” McDougall said. “The only thing shipped out now would be last week’s sugar.”
Prices have slumped 27 percent in the past 12 months on forecasts that supply will exceed demand for the third straight year.
Arabica-coffee futures for May delivery rose 1.4 percent to $1.438 a pound on ICE. Orange-juice futures for May delivery added 0.3 percent to $1.2925 a pound. Brazil is also the top producer of coffee and orange juice.
Also in New York, cocoa for delivery in May advanced 0.3 percent to $2,139 a ton. Cotton futures fell 0.1 percent to 83.14 cents a pound on ICE.
--Editors: Millie Munshi, Patrick McKiernan