White sugar futures are expected to stay weak in the short term as expectations of a cut in India's white sugar import duty have failed to materialise and EU sugar availability has risen, merchant Czarnikow said. "The fundamental outlook for the white sugar market remains generally constructive for the medium/long term," Czarnikow said in its March sugar market review, made available to Reuters.
"In the short term, however, futures prices in London may remain under pressure, as expectations of a reduction in the Indian white sugar duty have so far failed to materialise to offset the increase in EU availability this season," it said.
Some industry players had expected India to cut import levies on sugar after severe drought ravaged its crops and boosted its import requirements.
However, efficient use of stocks and purchasing of raw sugar by Indian industry have reduced the pressure for duty cuts, analysts and traders say.
Czarnikow said that, despite a weak market, physical offtake has continued to take place, in particular, strong buying from Pakistan, Indonesia and Iraq, which has helped to support the market.
Liffe benchmark May white sugar futures were down $3.90 at $257.50 a tonne in volume of 1,967 lots at 1512 GMT, having moved between $$260.50 and $257.00.
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