White Sugar Falls for 2nd Day After F.O. Licht Raises Production Forecast

(Bloomberg) -- White sugar fell for a second
straight trading session in London after German commodity
research company F.O. Licht lifted its production forecast.

Global sugar-cane output, led by an increase from India,
will be 4.6 percent higher than previously forecast, bolstering
a surplus, F.O. Licht said in an e-mailed report today. Output
will be 130 million tons in the 2006-2007 season, up 19 percent
from last year, the Ratzeburg, Germany-based group said. India
is the world's second-biggest producer, after Brazil.


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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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