Raw sugar futures settled mixed Thursday as the market extended its consolidation, with analysts saying prices may mount a challenge to their recent highs in the days ahead. The July raw sugar contract eased 0.03 cent to finish at 15.35 cents per lb. October sugar rose 0.05 cent to close at 16.47 cents. He said the ability of the market to stay in a rough range from about 15.30 to 15.60 cents meant there was more of a chance for the market to probe its recent high at 16.05 cents.
Traders said a source of strength for sugar is sturdy demand, especially from Asia, which more than offset a record cane crush in top producer Brazil. This could be readily seen in news that premiums for Thai raw sugar jumped to their highest level in more than a month at 140 points over New York.
This was further emphasised by news that Russian sugar imports jumped in May to 348,800 tonnes from 2,662 tonnes in April, after the country cut its import tariff, according to the Russian Sugar Producers' Union. With demand in mind, Brazilian mills are ramping up sugar output, with leading producer Cosan saying sugar's share in its crush may rise to 55 percent of the total.
They pegged support in July at 15 and 14.90 cents. Volume traded Wednesday in the No 11 sugar market was 148,835 lots, down from 153,955 lots - the exchange said. Open interest in the No 11 sugar market was at 779,168 lots as of June 10, down from 779,588 contracts - exchange data.
Comments
Comments are closed.