Mumbai, 25 MAR (Commoditiescontrol): ICE raw sugar future prices slipped lower on Friday as dollar continued to strengthen against the basket of currencies, that makes buying sweetner expensive, while large speculators have lowered their bullish bets amid rising concerns about the health of the global banking system. However, the commodity continues to enjoy favourable fundamentals.
On Monday, StoneX Group have cut their 2022/23 global sugar surplus estimate to 2.5 MMT from a Jan forecast of 5 MMT, citing lower production in India due to excessive rain.
May ICE raw sugar lost 0.3% or 7 cents at 20.82 cents per lb. The asset hit a contract high of 21.33 cents last week. May London white sugar settled $0.20, at $597.60 a tonne.
Dealers said funds were easing back from a large net long position while lower energy prices also contributed to the market's decline. However, they added that, the fundamental picture remains more bullish than bearish with many unanswered questions on production from major producers India and Thailand.
Brazil's center-south crushed 608,000 tonnes of sugarcane in the first half of March, industry group Unica said on Friday, adding sugar output totalled just 16,000 tonnes.
Looking ahead though, trader Czarnikow said it expects sugar output in top producer Brazil will be 37.6 million tonnes this season, the second-highest on record.
Earlier this month, May NY sugar posted a contract high, and London sugar rose to a 5-3/4 month nearest-futures high on global weather concerns.
For Monday, support for the May Sugar contract is at 20.65 cents and 20.48 cents, with resistance at 20.99 cents and 21.16 cents.
(By Commoditiescontrol Bureau: 09820130172)
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