ICE sugar falls to nine-month low on Brazilian production estimates

Published: 03/17/2017, 2:55:31 PM

Raw sugar futures fell sharply to the lowest level in more than nine months on Friday as funds liquidated long positions against the backdrop of favourable crop prospects in top grower Brazil, according to Reuters.

May raw sugar futures were off 0.64 cents, or 3.5%, at 17.61 cents a lb at 1402 GMT after dipping to a low of 17.52 cents, the weakest for the front month since early June last year.

Dealers said the market was weighed down by favourable crop conditions in top grower Brazil which has reinforced sentiment that there is likely to be a global surplus in the upcoming 2017/18 season.

"Brazil's sugar campaign is forecast to receive rains in the coming week or so and crop forecasts remain large and leaning away from ethanol towards sugar," said Tom Kujawa, co-ahead of the Softs Department at Sucden Financial.

"Perhaps most importantly the sugar bears seem to have the spec community on their side," Kujawa added, noting some were liquidating longs while others were going short on the basis of a big crop in Brazil and the prospect of a global surplus.

May white sugar fell US$10.50 or 2.1%, to US$499.80 a tonne.

Mexico demands reciprocity in its refined sugar-for-fructose trade with the United States and it is unfair to "punish" its sugar industry, the agriculture minister said on Thursday, at a time of tensions over the pace of Mexican sugar shipments north.

 

Raw sugar futures fell sharply to the lowest level in more than nine months on Friday as funds liquidated long positions against the backdrop of favourable crop prospects in top grower Brazil, according to Reuters.

May raw sugar futures were off 0.64 cents, or 3.5%, at 17.61 cents a lb at 1402 GMT after dipping to a low of 17.52 cents, the weakest for the front month since early June last year.

Dealers said the market was weighed down by favourable crop conditions in top grower Brazil which has reinforced sentiment that there is likely to be a global surplus in the upcoming 2017/18 season.

"Brazil's sugar campaign is forecast to receive rains in the coming week or so and crop forecasts remain large and leaning away from ethanol towards sugar," said Tom Kujawa, co-ahead of the Softs Department at Sucden Financial.

"Perhaps most importantly the sugar bears seem to have the spec community on their side," Kujawa added, noting some were liquidating longs while others were going short on the basis of a big crop in Brazil and the prospect of a global surplus.

May white sugar fell US$10.50 or 2.1%, to US$499.80 a tonne.

Mexico demands reciprocity in its refined sugar-for-fructose trade with the United States and it is unfair to "punish" its sugar industry, the agriculture minister said on Thursday, at a time of tensions over the pace of Mexican sugar shipments north.