Sugar futures climbed following a forecast that the worldwide shortfall will be higher than estimated amid ample demand.
Australia, Brazil and Thailand have criticized the European Union for planning to export an extra 500,000 tons of sugar this year.
Construction officially gets under way Feb. 3 in Gramercy, La., on what will become one of the largest capacity sugar refineries in the United States.
The Obama administration wants to save billions of dollars by putting new limits on farm subsidies and cutting back on government support for crop insurance companies, according to the fiscal year 2011 budget proposal released Monday by the White House.
Sugar futures may jump 39 percent by August, extending the sweetener’s rally to its highest level in 30 years amid global supply shortages, Commerzbank AG said.
Ukraine exported 14.9 million metric tons of grain harvested in 2009 between the beginning of the current marketing year July 1, 2009 and Jan. 25 this year, the Agriculture Ministry reported Wednesday.
Soybeans rose the most in more than a week on speculation that this month’s slump to the lowest level 15 weeks may encourage investors to buy contracts to close out profitable bets on lower prices.
Commodities may trail last year’s performance as China’s move to curb bank lending reduces demand, said Charl Malan, who helps manage $2.3 billion at Van Eck Global Hard Assets Fund.
Wheat prices fell for the third straight session on speculation demand for U.S. grains will decline as China limits lending to slow economic growth. The Reuters/Jefferies CRB Index of 19 raw materials dropped to a five-week low. Wheat has slumped 8.8 percent this month as mounting global inventories outweigh an increase in weekly U.S. exports.
Corn fell to a 12-week low on concern that record U.S. production will overwhelm global demand as China seeks to slow economic growth. Limits on lending in China sparked a rally in the dollar, sending crude oil to a five-week low and the Reuters-Jefferies CRB Index of 19 commodities down as much as 1.1 percent. On Jan. 12, the U.S. forecast record world production, signaling ample supplies for makers of livestock feed, sweeteners and ethanol.