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Mumbai (Commodities Control) - Sugar prices on Wednesday posted moderate losses. A surge in sugar production in India weighed on prices along with weakness in the Brazilian real.
May raw sugar fell 1.8% to 16.14 cents per lb.May white sugar fell 1.6% to $458.00 a tonne.
Data on Wednesday from India's Sugar Mills Association showed that India's Oct-Feb sugar production rose 20% y/y to 23.38 MMT. Weakness in the Brazilian real on Wednesday was another negative factor for sugar prices as the real fell 1.45% to a 4-month low against the dollar. The weaker real provides incentive for export selling by Brazil's sugar producers.
Sugar prices are correcting lower from last Tuesday's contract and 4-year nearest-futures high. Concern about smaller global sugar supplies has fueled recent fund buying of sugar futures.
Traders, however, eye the current shipping delays in soybean exports which might curb global sugar supplies because the queue of vessels waiting at Brazilian ports is so large that bottlenecks will likely continue until May when sugar is normally the biggest crop for export.
Support and resistance for Sugar #11 lies at 15.96 cents and 16.42 cents per lb
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