This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sugar Prices Surge on China Exports Data

Stocks in this article: KFT HSY UL PEP KO DPS HANS

NEW YORK ( TheStreet) -- Raw sugar futures were surging Tuesday morning as long speculators held onto their positions on evidence that China's economic engine continues to run full pace.

Raw sugar for July delivery was rising 3.7% to 21.74 cents a pound, extending the gains from the previous day.

China reported a better-than-expected trade surplus of $11.4 billion in April from $1.687 billion a year ago, on a jump in exports.

Although inflation concerns have placed China on the sidelines of the sugar market, "look for them to become active importers of sugar over the coming months," PFG Best Senior Research analyst Robin Rosenberg remarked.

Long liquidation on sugar, driven by expectations of adequate supply, has weighed the commodity down over 16% year to date, big long positions remain in place.

The most recent Commitment of Traders Report shows large non-commercial traders holding a net-long position of 118,862 contracts as of April 26th -- much less than the record-long positions seen in 2008, but nevertheless a large position, say optionsXpress analysts Mike Zarembski and Rob Kurzatkowski.

Although Brazil, the top sugar producer, is expecting prolific sugar harvests in 2011 to 2012, the Brazilian Sugarcane Industry Association -- in conjunction with the Center for Sugarcane Technology (CTC) and other sugar and ethanol producer associations in South-Central Brazil -- cautions that the average productivity in the south-central region could still be hurt due to aging cane fields, a reduction of sugar cane that has been growing for nearly two years to less than 3% of the total planted area this harvesting year versus 14% this past year, and unfavorable weather.

In India, sugar production rose 21.8% to 22.6 million tons in October through April over the same time last year, according to a PFG Best report. Meanwhile, research company F.O. Licht reports that there's a strong possibility Thai sugar exports will hit an all-time-high of 7 million tons this year.

Food and drink stocks were mostly trading higher. Kraft Foods (KFT) was rising 0.4% to $34.16, The Hershey Company (HSY - Get Report) was adding 1.1% at $56.46, Magnum chocolate maker Unilever (UL) was rising 1.5% to $32.83 and PepsiCo (PEP - Get Report) was up 0.2% at $69.93.

Pepsi rival Coca-Cola Company (KO - Get Report) was up 0.4% at $67.23 and smaller peer Dr Pepper Snapple Group (DPS - Get Report) was trading sideways at $39.39. Natural soda company Hansen Natural Corporation (HANS) was falling 0.1% to $65.44.

>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to:

Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs