ICE sugar hovers around two month low
Published: 08/20/2012, 12:49:42 PM
Raw sugar futures on ICE nudged higher on Monday, pausing after their recent downtrend, with the market remaining under pressure as producers committed to selling prices in top grower Brazil, according to Reuters.
Raw sugar futures consolidated above Friday's two-month low in early trading, after the market finally broke out of its downtrend, closing higher on Friday following 13 consecutive lower closes.
Dealers said favourable weather in Brazil has enabled the pace of harvest to pick up and producers fixing their prices has followed.
Benchmark October sugar futures on ICE rose 0.11 cent or 0.6% to 20.29 cents a lb by 0857 GMT. The contract touched 20.11 cents on Friday, the lowest level for the front month since June 15.
Speculators cut their net long position in raw sugar contracts in half on ICE Futures U.S. in the week to Aug. 14, as the futures market tumbled to a seven-week low, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
White sugar October futures on LIFFE rose US$1.80 or 0.3% to US$561.30 per tonne.