US: Sugar soars on supply concerns from India and Europe

Sugar futures in New York are at their highest level since late December, amid concerns that lower supply from India and parts of Europe will leave the market tight. Associated British Foods this week said UK sugar production will fall by 28% in the current crop year after bad weather hurt beet production. Analysts expect production in India to fall below last year's level of around 36 million tonnes, and that could reduce the chances that the country's government will allow additional export quotas. So far, Indian sugar mills have exported an already permitted 6 million tonnes of sugar, and the government is unlikely to authorize more until it knows the size of the cane crop, said Stephen Geldart, head of analytics at brokerage Czarnikow . "That represents less sugar availability in the short term," he said. Raw sugar rose as much as 3.3% in New York to 20.78 cents a pound, the highest since Dec. 27. Refined sugar rose by 2.4% in London. Global supply should improve when Brazil ...