Login ID:
Partner Login
Contact Us : 7066511911

ICE Raw Sugar Hits Over 4.5 Months High on Output Concerns in Thailand, Fund Buying

1 Aug 2020 8:27 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – Raw sugar futures on ICE climbed to over 4-1/2 month high on Friday supported by a diminishing outlook for production in Thailand and gains in many other dollar-denominated commodity markets driven partly by the weakness of the U.S. currency.

NY world sugar prices rallied sharply on fund buying and a technical breakout to a new 4-3/4 month high. Sugar prices also saw support from expectations for China and Indonesia to boost imports.

Sugar prices saw support from Friday's mild rally in September WTI crude oil prices, which was positive for Brazilian ethanol prices/production and negative for sugar production.

October raw sugar ​​settled up 0.53 cents, or 4.4%, at 12.64 cents per lb, the highest since March 10. October white sugar ​​settled up $13.40, or 3.6%, at $381.60 a tonne.

Dealers said drought was set to curtail production in Thailand, helping to at least partially offset a strong increase in output in Brazil.

"With less Thai raws becoming available early next year, the market looks substantially less crowded by the extra sugar from Brazil," Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

A U.S-based broker said talks of strong Chinese buying also boosted prices, as well as positioning by funds.

Traders and analysts saw production in the key Centre-South region of Brazil rising sharply in 2020/21 leading to a global surplus of the sweetener.

The European Commission reported Thursday that EU Oct-Jul sugar exports slumped 54% y/y to a 3-year low of 600,000 MT, indicating the reduced availability of supplies from the EU.

Speculators increased their net long position in raw sugar on ICE Futures U.S. in the week to July 28 by 8,385 contracts to a total long of 70,470 contracts, data from the U.S. Commodity Futures Trading Commission (CFTC) showed on Friday.

Support and Resistance for sugar #11 lies at 11.88 cents and 13.10 cents per lb respectively.

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
Uttar Pradesh Sugar Mill Prices - 29 SEPTEMBER 2020
Sugar Prices Down In Mumbai, Kolhapur, Demand May Pick ...
Sugar (LIFFE) Testing a Potential Resistance Zone ($3...
Sugar (ICE) Consolidating Near Support ($13.10)
ICE Raw Sugar Slides From 5-Week Highs; Ends Sharply Lo...
Top 5 News
Uttar Pradesh Sugar Mill Prices - 29 SEPTEMBER 2020
Sugar Prices Down In Mumbai, Kolhapur, Demand May Pick ...
Jeera: Spot Prices Extend Upmove amid Firm Demand, Stro...
Burma Urad Widen Losses In Chennai-Delhi; Domestic Vari...
New GuarSeed Gains amid Rise in Arrivals of New Crop
Top 5 Special Reports
USD/INR (Oct 20) Consolidating in a Downtrend / More...
CCI Gears Up For Export First Time thru Government Chan...
Weekly: Pulses Rise on Crop Damage Report, Hike In MSP
USD/INR (Oct 20) Needs a Breakout Above Resistance a...
Weekly: ICE Cotton Manages to End Positive on Technica...
Copyright © CC Commodity Info Services LLP. All rights reserved.