ICE sugar recovers from Thursday’s dip
Published: 05/19/2017, 1:41:23 PM
Raw sugar futures gained on Friday as forecasts for adverse weather in top grower Brazil temporarily offset worries about further pressure from the real currency, according to Reuters.
July raw sugar rose 0.15 cents, or 0.94%, to 16.18 cents per lb by 1115 GMT, recovering some ground.
Prices fell sharply on Thursday, as the Brazilian real slumped 8% against the U.S. dollar in its biggest%age drop since 1999.
Raw sugar fell as much as 4.4% before recovering ground to close 1.7% lower.
The further rebound on Friday was largely driven by more supportive technicals and forecasts for heavy rains in top grower Brazil, which could temporarily disrupt production.
"Brazil's southern cane region is now seeing a very big turn for the worse in the weather," Commonwealth Bank of Australia's Tobin Gorey said.
However, dealers noted there is still risk for further pressure from the real currency, as Brazil grapples with allegations that President Michel Temer condoned bribes.
August white sugar rose US$4.80, or 1.05%, to US$460.10 a tonne.