Wednesday, December 19, 2018
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sugar falls for third session on fund sales, cocoa futures rise

jan. 11 (bloomberg) -- sugar dropped for the third straight session on increasing sales by speculators after prices last week reached the highest level in almost 29 years. cocoa gained.

“funds are jumping in and taking profit” in sugar, said jimmy tintle, an analyst at transworld futures in tampa, florida. “we’ve seen a lot of buying since december. they bought all the way up.”

sugar futures more than doubled in the past 12 months as adverse weather hampered harvests in brazil and india, the world’s largest producers, extending a global-production deficit. hedge-fund managers and other large speculators boosted net-long positions, or bets on rising prices, by 25 percent in the six weeks ended jan. 5, government data show.

raw-sugar futures for march delivery fell 0.37 cent, or 1.3 percent, to 27.16 cents a pound at 9:44 a.m. on ice futures u.s. in new york. prices dropped 3.1 percent in the previous two sessions. on dec. 6, the most-active contract reached 28.95 cents, the highest level since jan. 27, 1981.

“we’re going to see technical selling for the next couple of days,” and sugar then will rebound to 28 cents, tintle said.

cocoa futures for march delivery gained $31, or 0.9 percent, to $3,327 a metric ton in new york. before today, the commodity advanced 26 percent in the past 12 months.

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