Mumbai commodities Control - NY sugar recovered from a 1-1/2 week low Tuesday and moved moderately higher after a rally in the Brazilian real sparked short-covering in NY sugar futures. The real on Tuesday rose sharply by 2.21% against the dollar, which discourages export selling by Brazil's sugar producers.
Sugar prices have support 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.
March raw sugar ended flat at 15.74 cents per lb. The market earlier dipped to a low of 15.62 cents, its weakest since Jan. 13. March white sugar fell $1 to $444.20 a tonne.
Dealers said gains were curbed by rains in Brazil which boosted cane growth, while continued export sales by India ensured that supplies remained ample.
Funds appeared to have paused after helping to push prices to the highest level in 3-1/2 years.
Rabobank said in a note that the increase in their long position last week was smaller than expected.
Support and resistance for Sugar #11 lies at 15.62 and 15.86 cents per lb, respectively.
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