ICE raw sugar slumps on outside markets
Published: 06/29/2012, 8:19:23 AM
Raw sugar on the ICE Futures U.S. exchange tumbled Thursday as investors sold on concerns over the euro zone and weaker equities, according to Dow Jones.
"It's just worries over Europe not making any progress" ahead of an EU summit, said Mike McDougall, senior vice president at brokerage Newedge. "I don't see any trade or origin selling--I just see macro stuff."
Front-month ICE sugar for July delivery was 1.5% lower at 21.10 cents a pound in late-morning trade Thursday, while the more-actively traded contract for October delivery was 3.1% lower at 20.31 cents a pound.
Traders said concerns over near-term supply tightness due to a slow harvest in top-producer Brazil are keeping the front-month futures trading at a premium to October.
"This is technically driven 'get me out' selling," said Joe Nikruto, senior broker at R.J. O'Brien Futures. He added it's likely that index funds are looking at the macro-environment and liquidating long positions.