ICE sugar reaches two week high ahead of Brazilian rain
Published: 05/17/2017, 2:13:57 PM
Raw sugar futures on ICE rose to a two-week high on Wednesday, boosted by technically-driven buying and forecasts for more rain in top grower Brazil which look set to delay the harvest, according to Reuters.
July raw sugar rose 0.31 cents, or 1.95%, to 16.19 cents per lb by 1217 GMT after setting a two-week high for the front month of 16.21 cents.
Traders said buying was driven largely by a more bullish technical outlook with the July contract closing above its 20-day moving average on Tuesday for the first time since February.
They noted there was a band of resistance around 16.20 to 16.25 cents, an area which had provided support last month.
"If we can get through that then I think it could lead to a short-covering rally which could take the market up towards 17 cents," one dealer said.
The market also derived support from forecasts of further heavy rains in parts of Brazil on Friday, Saturday and Sunday.
"That amount of rain will halt harvesting operations for sure," one trader said.
August white sugar was up US$7.30, or 1.6%, at US$455.30 a tonne.