Mumbai (Commodities Control) – Raw sugar futures on ICE closed down on Monday, extending a slide from a 3-1/2 year high hit in mid-January, as the market consolidates at a lower level amid a lack of fresh news on fundamentals.
March raw sugar closed 0.13 cent down, or 0.6%, to 15.74 cents per lb, the lowest price in 10 days.March white sugar rose 0.1% to $445.20 a tonne.
Sugar prices saw downward pressure from a slump in the Brazilian real to a 2-1/2 month low against the dollar, which encourages export selling by Brazil's sugar producers.
Dealers said sugar was likely to consolidate at current levels, with funds unlikely to cut much more of their longs and the risk, on balance, being that they reinstate their longs if macroeconomic factors turn positive again.
Broker Marex Spectron said the market needs answers to some key issues, such as Chinese import appetite, size of Indian exports and the status of the Thai and the Brazilian crops.
Brazil's center-south sugar growing region will crush an estimated 590.4 million tonnes of cane in the 2021/2022 season, stable from a prior forecast, broker StoneX said.
A Syrian state agency has issued an international tender to purchase and import about 85,000 tonnes of refined white sugar, European traders said.
Having said so, Sugar prices saw underlying support on Monday from reduced sugar output from Thailand, the world's second-largest sugar exporter. The Thailand Office of the Cane & Sugar Board reported Monday that Thailand's 2020/21 sugar production from Dec 10-Jan 21 fell 35% y/y to 3 MMT.
Support and resistance for Sugar #11 lies at 15.47 cents and 16.23 cents per lb, respectively.
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