Sugar rebound stalls

September 13, 2013

sugar import
sugar

Raw sugar futures on ICE were little changed in heavy volume on Thursday as a week-long rally lost momentum amid forecasts showing there is still likely to be a global surplus in 2013/14. Cocoa neared a one-year high on signs of improved demand, and arabica coffee futures on ICE Futures US fell, giving up the previous session’s rally as concerns about dry weather in top grower Brazil eased.

ICE October raw sugar finished up a marginal 0.01 cent at 17.18 cents a lb. The contract peaked at 17.33 cents on Wednesday, a four-month high for the front month, after rallying nearly 6 percent in the past week. Total volume exceeded 190,000 lots, nearly double the 250-day average, preliminary Thomson Reuters data showed. Sugar prices have been falling for more than two years, hurt by excess global supplies, and the front month dropped to a three-year low of 15.93 cents in July. “The movement we just saw is more of a technical rebound than the start of a new bull trend movement,” said Romain Lathiere, head of dealing at Diapason Commodities Management.

The global sugar surplus could fall by 68 percent in the 2013/14 season from the year-earlier period due to rising global consumption, Datagro commodities consultancy said on Wednesday. Total open interest tumbled on September 11, falling nearly 3 percent from the previous session to 895,457 contracts, a three-week low, amid heavy October/March spreading. Total futures volume reached 353,080 contracts, the highest since January 2008, ICE data showed. Dealers continued to roll positions out of October, ahead of expiry at the end of September, into March, boosting volume. The October/March spread widened for a second straight day to a discount around 0.53 cent, versus 0.48 cent Wednesday.

October whites closed down $2.60, or 0.5 percent, at $494.50 per tonne. Cocoa futures on ICE climbed in heavy volume, flirting with Wednesday’s one-year high at $2,599 per tonne, basis second position, on signs that global demand is rising, dealers said. Broker Marex Spectron forecast a global cocoa deficit of 134,000 tonnes in 2013/14 after a deficit of 161,000 tonnes in 2012/13. ICE December cocoa rose $20, or 0.8 percent, to settle at $2,591 per tonne.

December cocoa on Liffe rose 11 pounds, or 0.6 percent, to settle at 1,695 pounds a tonne. Arabica coffee futures on ICE were lower with December ending down 0.20 cent, or 0.2 percent, at $1.2060 per lb, trading within Wednesday’s range. The market has rallied after setting a four-year low of $1.1525 per lb on September 5 but remains stuck in a long-term downntrend due to excess supplies Liffe November robusta coffee fell by $16, or 0.9 percent, to close at $1,753 a tonne, also an inside session. Courtesy Reuters

Published in ZaraiMedia.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More