Login ID:
Password:
Partner Login
Contact Us : 7066511911

ICE Sugar futures fall further from six-year high on dollar strength, supply concern ease

7 Feb 2023 8:08 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 7 FEB (Commoditiescontrol): ICE raw sugar futures fell on Monday, with concerns about short-term supply tightness easing somewhat. Last week, the sweetener accumulated gains on the back of reduced sugar output and smaller sugar exports from India.

March ICE raw sugar settled down 0.58 cent, or 2.7%, at 20.66 cents per lb, slipping further away from last week's six-year peak of 21.86 cents. March London white sugar fell $1.70, or 0.3%, at $549.60 a tonne. The contract lost 2% in the week.

Dealers said concerns over tight supplies were easing, particularly in the whites market, in which front-month March has slipped to a discount to May in the run-up to its expiry next Monday.

Dealers said a small delivery against March whites was now expected, with India the most likely origin.

Heavy rainfall in India, the world's second-largest producer, has led to a reduction in sugar cane crushing and "catalysed an upward move in sugar prices", Fitch Solutions said in a note on Friday.

Meanwhile, analyst cautioned traders against creating fresh long position. They expect the market to consolidate in the short term after its recent strong advance, with technical indicators suggesting the market has become overbought.

The run-up has been fuelled by tight supplies and partly by suggestions that lower than expected production in India is likely to curb its exports.

India, the world's second-largest sugar exporter, is likely to produce 34 million tonnes of the sweetener in 2022/23, down 7% from the previous forecast, a leading trade body said.

Brazil's decision to end a tax exemption on imports of fuel ethanol could also potentially lead to more use of cane to produce the biofuel domestically at the expense of sugar.

A global sugar deficit of 1.01 million tonnes is projected for the 2023/24 season, ending a run of three successive surpluses, analyst Green Pool said.

Prospect of smaller sugar output in India is seen discouraging the government from allowing additional sugar exports is boosting prices. India's National Federation of Cooperative Sugar Factories projects that India's 2022/23 sugar production will fall 4.5% on year to 34.3 MMT.

India's Food Secretary Chopra said last Thursday that India would assess domestic demand before deciding whether to allow more sugar exports next month. India is the world's second-largest sugar exporter.

Sugar prices also have support from last Tuesday when Brazil's state-owned oil company Petrobras raised gasoline prices by more than 7% to distributors. Strength in gasoline is supportive of ethanol prices, and higher ethanol prices may prompt Brazil's sugar mills to boost ethanol production at the expense of sugar.

Brazil's center-south sugarcane crushing totalled only 440,000 tonnes in the first half of January, as just a few mills continue with operations in the between-harvests period, industry group Unica said.

Brazil is the biggest sugar producer in the world. Also, the India Sugar Mills Association (ISMA) reported last Tuesday that India's 2022/23 sugar production from Oct-Jan 15 rose 4% on year to 15.7 MMT. India is the world's second-largest sugar exporter.

Earlier this month, NY sugar posted a 2-1/2 month low on an improved sugar supply outlook. Unica reported on Jan 11 that Brazil's 2022/23 sugar production through December rose 4.4% on year to 33.462 MMT.

Speculators increased their bullish bets on raw sugar futures on ICE U.S. in the week to Jan. 17, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

For Tuesday, support for the December Cotton contract is at 20.37 cents and 20.08 cents, with resistance at 21.16 cents and 21.66 cents.

(By Commoditiescontrol Bureau: 09820130172)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   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
ICE Sugar price fall as dollar strengthen, funds reduce...
Sugar (ICE) Consolidating Near 52-Wk Highs (Bullish) ...
Sugar (LIFFE) Trending Higher / Next Resistance at $6...
ICE Sugar futures retreats as dollar strengthens
Sugar (LIFFE) Consolidating Near 52-Wk Highs / Next R...
more
Top 5 News
Branded processed pulses at Mumbai APMC market- 25th Ma...
Madhya Pradesh origin Masoor trades weak at Delhi
Africa Tur price extend gain at Mumbai; Burma Urad turn...
Rajasthan, M.P. Chana eases at Delhi
Oil Spot Prices : 25-Mar-2023
Top 5 Special Reports
Weekly: ICE Sugar post weekly gain, supply fears outwei...
Weekly: Cotton's future align to banking crisis and the...
Global Wheat Market: Brazil's Record Harvest to Boost E...
Soybean (Indore) Weak Price Trend / Next Support at R...
Chana Delhi (Rajasthan Line) Bullish Breakout Above R...
Copyright © CC Commodity Info Services LLP. All rights reserved.