Login ID:
Partner Login
Contact Us : 7066511911

ICE Raw Sugar Drops to 6 Week Lows on Weaker Demand Concerns

15 Jul 2020 7:49 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – Raw sugar futures on ICE slid to a six-week low on Tuesday as it continues to suffer amid expectations for lower demand overall.

Sugar prices on Tuesday closed lower for a fifth session, with London sugar at a 1-1/2 month low. Robust supplies and suspect demand continue to pressure sugar prices.

Uncertainty regarding reopening plans amid spikes in coronavirus cases also weighed on prices.

October raw sugar ​​settled down 0.26 cent, or 2.2%, at 11.32 cents per lb, having hit a six-week low of 11.27 cents earlier in the session. August white sugar ​​settled down 20 cents, or 0.1%, at $334.90 a tonne.

Weakness in energy markets can boost sugar production in the center-south of Brazil where it can be used either to make the sweetener or biofuel ethanol.

"The rumblings in the oil market are making the (sugar) market a little nervous," Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

Not to forget that, sugar supplies are ample after Unica reported last Thursday that Brazil's Center-South sugar production in the second half of June rose 23.3% y/y to 2.728 MMT, with the percentage of cane used for sugar climbing to 47.42% in 2020/21 from 37.06% in 2019/20.

On the bullish side for sugar, however, Unica also reported that total exports of ethanol by Brazil Center-South mills in June rose 44% y/y to 267 mln liters, which indicates pressure for less sugar production and more ethanol production.

Support and Resistance for sugar#11 lies at 11.10 cents and 11.66 cents per lb, respectively.

(Commodities Control Bureau)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
Guar Price Becomes Roller Coaster As Crop Size Estimate...
Rains In Some Parts Of Rajasthan Drag Down Guar Gum And...
Crop Worries Drive Up Guar Complex Prices In Jodhpur
Guar seed and guar gum prices fell down in Rajasthan an...
Guar gum and seed prices increase due to lower sowing a...
Top 5 News
DGFT Cancels Licenses of 56 Pulses Importers; Caught Fo...
India 2020-21 State wise Kharif Pulses Sowing Aug 5
Coriander Prices Weaken In Ramganj Amid Higher Arrivals...
Sugar Prices to Sweeten Until Diwali, Higher Output May...
Burma,Domestic Variety Urad Flat in Major Mkts
Top 5 Special Reports
Cabinet May Extend Buffer Stock Subsidy Scheme For Suga...
USD/INR (Aug 20) Consolidating Below Key Resistance ...
Flour, Maida Export From India Not Viable Despite Recen...
USD/INR (Aug 20) Consolidating Below Key Resistance ...
USD/INR (Aug 20) Testing Resistance Near 75.50 (the ...
Copyright © CC Commodity Info Services LLP. All rights reserved.