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Agricultural Commodities Surge Due to Backlog at Brazil’s Port

February 23, 2013 at 1:39 by Vladimir Vyun

Sugar gained as supply from Brazil, the biggest producer and exporter in the world, is expected to decline. Some other agricultural commodities were also affected. It is not that the country produces any less sugar, but the record backlog at Port of Santos prevents shipping of the commodity that is already prepared for export. Moreover, there is danger of a worker strike.

Agricultural commodities, including cocoa, coffee and sugar, fared far better than metals yesterday. The situation in Brazil definitely helped the prices. The commodity prices may turn down again if the problem becomes resolved, creating surge of supply.

May futures for delivery of raw sugar climbed as much as $0.0025 (1.40 percent) to close at $0.1815 per pound on ICE yesterday. Arabica coffee advanced $2.05 (1.45 percent) to $1.4380 per pound and cocoa added $6 (0.28 percent) to $2,139 per metric ton.

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