Sugar Commodity Prices Rises Strong Global Demand

Sugar prices for October delivery settled up 0.3 cent at 22.73 cents a pound. The contract price has risen nearly 58 percent since early May. Recent rally occurred because rains have delayed shipments from Brazil, the world's largest sugar producer, Lind-Waldock senior market strategist Stuart Kaufman said.

It is the latest in a string of weather-related issues that have plagued the market, from a drought in Russia to excessive rain in Indonesia.

"The adverse weather has gradually scaled back production estimates in a number of countries, including Brazil and Pakistan and Russia. The market is reacting accordingly," said Michael McDougall, a senior vice president at Newedge.

Corn rose after the U.S. Agriculture Department's revised production outlook came in mostly as traders expected, said Telvent DTN analyst John Sanow. Corn for December delivery rose 7.5 cents to settle at $4.7825 a bushel, December wheat fell 1.25 cent to $7.3675 a bushel and November soybeans fell 15 cents to $10.31 a bushel.

The government forecast corn production at 13.2 billion bushels, which was 2 percent less than its August forecast. The estimate remains higher than the 2009 record of 13.1 billion bushels.