Bloomberg; Sugar Climbs in London on Report Algeria Waived Duty

January 11, 2011

Bloomberg

Sugar rose for a third day in London and New York on a report that Algeria will waive import duty and value-added tax on the sweetener, spurring demand.

Algeria will lift customs duties and VAT until Aug. 31, Reuters reported on Jan. 8. The North African nation was forecast to import 1.37 million metric tons of sugar in the 2010-11 season, up from 1.2 million tons a year earlier, according to the U.S. Department of Agriculture.

“I expect a couple hundred thousand tons to move to Algeria,” said Cyril Meyer, a broker at SCB. “There will be high demand for white sugar.”

White, or refined, sugar for March delivery gained $12.70, or 1.6 %, to $788.20 a ton at 10:24 a.m. on NYSE Liffe in London. Raw sugar for March delivery rose 0.29 cent, or 0.9 %, to 32.03 cents a pound on ICE Futures U.S. in New York.

Sugar has climbed 9.9 % in the past year in London as crops were disrupted in Brazil, Pakistan and Russia. India, the world’s second-largest producer after Brazil, “was supposed to start exporting sugar, but this decision has been delayed,” Meyer said.

Robusta coffee for March delivery gained 2.2 % to $2,101 a ton on NYSE Liffe. Arabica beans for March delivery added 1 % to $2.3365 a pound in New York.

Cocoa for March delivery fell 0.3 % to 1,934 pounds ($3,002) a ton in London. The chocolate ingredient for March delivery dropped 0.5 % to $2,868 a ton in New York.

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