ICE sugar jumps nearly 2% on Hurricane Irma fears
Published: 09/07/2017, 7:05:45 AM
Raw sugar futures on ICE rose on worries that Hurricane Irma could hurt cane in key regions, according to Reuters.
October raw sugar settled up 0.26 cent, or 1.9%, at 14.29 cents per lb.
Worries about Hurricane Irma possibly hitting growing regions in the Caribbean and Florida helped boost prices, traders said.
The hurricane could potentially impact sugar production directly or sugar prices through oil and ethanol prices, said James Liddiard, analyst at Agrilion Commodity Advisors in New York.
Sugar prices often track energy prices as petroleum is a key input cost and millers can divert cane to sugar or ethanol.
"While no one is forecasting the demise of these crops, there could be some impact to production and facilities. A direct hit to Florida would also cause further dollar weakness," added James Cassidy, a director at Societe Generale in New York.
India's plans to allow 300,000 tonnes of raw sugar imports continued to support prices, said Peter Mooses, senior market strategist with RJO Futures in Chicago.
October white sugar settled up US$3.10, or 0.8%, at US$380.60 per tonne.