Sugar Rises as Brazilian Ethanol Production Reduces Output of Sweetener

(Bloomberg) -- Sugar in New York rose to a 12-week
high as mills in Brazil, the world's biggest producer, use more
sugar cane to make ethanol instead of the sweetener.

The center-south region of Brazil produced 5.4 million
metric tons of sugar this year as of June 15, down from 6 million
tons at the same point last year, the London-based International
Sugar Organization said today in an e-mailed report. Ethanol
output jumped 10 percent to 4.2 billion liters, the group said.


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Cereal, Oilseed, Sugar Prices Will Be Supported by Biofuel Use, OECD Says

(Bloomberg) -- Cereal, oilseed and sugar prices will
stay close to current levels over the next decade because of
surging demand from biofuel producers, the Organization for
Economic Co-operation and a United Nations agency said.

Ethanol production from corn is forecast to double between
2006 and 2016 in the U.S., the Paris-based OECD and the Food and
Agriculture Organization said today in a report. The output of
biodiesel made from oilseeds in Europe and ethanol from sugar in
Brazil will also soar, they said.


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Refined Sugar Heads for Biggest Weekly Gain in Six on Euronext in London

(Bloomberg) -- White sugar headed for its biggest
weekly gain in six as speculators bet that rising ethanol
production in Brazil and plans to boost Indian stockpiles would
lift prices.

Ethanol production in the Center-South region of Brazil,
the world's biggest sugar producer, rose 7.4 percent in the
first five months of the year, Reuters reported yesterday,
citing the region's sugar-mill association, Unica. India, the
world's second-biggest sugar producer, will more than double
stockpiles to arrest a slide in prices amid record output,
Finance Minister Palaniappan Chidambaram said yesterday.


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