ICE white sugar futures climb ahead of expiry

Published: 04/13/2017, 5:23:09 PM

White sugar futures climbed on Thursday as the front-month contract inched towards expiry, according to Reuters.

May white sugar rose US$8.50, or 1.77%, to US$488.20 a tonne by 1153 GMT.

The May contract was heading towards expiry on Thursday. Open interest was at 4,204 lots, with dealers expecting a modest delivery of 100,000 to 150,000 tonnes.

May raw sugar also gained 0.20 cent, or 1.20%, to 16.90 cents a lb as technicals steadied.

"Everyone knows the situation with the oversupply in sugar but for the moment I think we've hit a bit of a soft bottom," said one dealer. "I think people are a bit scared to commit too much on the short side."

The market was also anticipating a raw sugar options expiry on Monday.

Egypt will impose a sugar export tariff of EGP3,000 (US$165.47) per tonne starting on Friday, the state's official gazette said.

Last month, it removed a tariff on raw sugar imports that traders said impeded private importers from securing supplies and contributed to a sugar shortage last year.