Mumbai (Commodities Control) –NY Sugar barely managed to end in the positive territory this week, as the most active ICE raw sugar contract ended at 16.98 cents per lb for the week ended 30th April. July raw sugar gained 10 points or 0.59% in the latest week. This is the fourth straight weekly gain for the sweetener. It is to be noted that around mid-week, Sugar #11 touched two-months high, reaching close to 17.80 cents per lb.
However, Sugar #5 ended 2.78% or $12.80/Tonne lower for the week ended 30th April. August white Sugar went past $480/T during mid-week.
Sugar no. 11 settled 31 points or 1.87% higher for the week ended 23rd April. July raw sugar on ICE futures ended the week at 16.88 cents per lb, last week.
May raw sugar expired on Friday up 2.1% at 17.44 cents per lb, while July raw sugar ended at 16.98 cents per lb, up 0.05 cent or 0.30%. August white sugar fell 1.4% to $447.10 a tonne.
London sugar ended at a 2-week low amid long liquidation pressures that emerged in sugar futures after Rabobank said late Wednesday that "some negative surprises in the Brazil sugar harvest could result in a lower surplus in 2021/22, but the fact remains that global sugar stocks are bulky from previous surpluses."
Traders said the harvest delay in Brazil might be one factor behind the relatively small delivery.
They added that while nervousness about the cane crop in Brazil
persists, output in key regions of India and Thailand is improving and the global market should be more or less balanced this year.
Meanwhile, Pakistan's state trading agency TCP is believed to have purchased some 50,000 tonnes of white sugar in an international tender which closed on Tuesday, European traders said on Saturday.
It was purchased at an estimated $447 a tonne c&f, they said. Seller was believed to be trading house Gemini. Gemini had offered the lowest price in the tender on Tuesday. Pakistan had on Friday asked other participants in the tender to match the lowest price.
Sugar prices recently saw strength and posted 2-month highs on Tuesday on concern about reduced global sugar production. Dry conditions may curb sugar yields in Brazil after Somar Meteorologia recently said that soil moisture in Brazil's sugar-cane growing regions has been insufficient to provide good development of cane crops.
On Thursday, Czarnikow said rain in Brazil's Center-South region from October through March was 36% below average, the biggest drought in more than a decade.
Sao Paulo in Brazil has seen the driest weather in 20 years in five of the six months through March, and yield losses could be as high as 20% in some areas, according to Somar.
Tuesday's data from Unica was bullish for sugar prices since it showed 2021/22 Center-South sugar production (Apr/Nov) was down 35.75% y/y in the first half of April to 624 MT. The percentage of cane used for sugar fell to 38.55% in 2021/22 from 40.15% in 2020/21.
On the technical side, ICE raw sugar managed money net long position rose for the third straight week, by 34,397 contracts to 257,699 contracts in the latest week to April 27, CFTC data showed. The rise in the net longs were the result of simultaneous rise in long position by 39,626 contracts and reduced short position by 4,771 contracts. The open interest was reported at 11,98,578 contracts vs 11,62,988 contracts in the last session.
Support and resistance for Sugar #11 lies at 16.26 cents and 17.61 cents per lb, respectively.
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