Sugar Rises Despite Forecast Growing Supply, Oil Climbs
Crude oil rose today as fears of the crisis in Europe eased and speculations persist that the Federal Reserve would perform another quantitative easing. Concerns over the debt issues in the eurozone were alleviated after yield on Spanish bonds fell as the country had met its target on a debt auction today. The Fed will announce its monetary policy decision after a meeting tomorrow and speculators hope that the US central bank would ease the monetary policy. August futures for delivery of crude oil gained $0.48 (0.6 percent) to $84.08 by 12:40 on NYMEX. Brent crude was flat at $95.85 per barrel as of 20:01 GMT today on ICE after falling earlier to $94.45 — the lowest intraday level since January 10, 2011.
Sugar price managed to rise today even amid speculations that supply from Australia would surge. The Australian Bureau of Agricultural and Resource Economics and Sciences predicted that Australian sugar exports may total 3.35 million metric tons in the year starting July 1, rising 13 percent from the March value of 2.96 million tons and reaching the highest level since the year ended June 30, 2010. The bureau raised its forecast for production of raw sugar to 4.4 million tons from the previous estimate of 4.25 million tons. Nevertheless, the sugar price surged from $0.2085 to $0.2147 per pound on ICE today.
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