Beet producers Western Sugar Cooperative and United Sugars Corp issued force majeure notices to clients late Tuesday, according to three market participants, after a cold snap hit large portions of the United States.
It is reported by Reuters.
March ICE sugar futures were up 2,1% in the session to $334,30 a tonn. Force majeure is declared when a company is unable to meet its commercial commitments due to unforeseen events.
«The recent unprecedented weather conditions have resulted in Western Sugar allocating its available supply of product among its customers», — said Heather Luther, general counsel for Western Sugar Cooperative, based in Denver, which operates across Colorado, Wyoming, Montana and Nebraska.
«These are the worst weather conditions we have had as a cooperative», — she said.
Freezing temperatures in the northern United States have affected beets. Frost in the south is also weighing on sugarcane growers, according to a report from World Weather Inc.
Prices rose Tuesday on expectations that a shortage in the U.S. will result in greater imports from Mexico and other regions, traders said.