Mumbai, 8 May (Commoditiescontrol): ICE raw sugar futures extended gains on Tuesday, on global supply concerns as excessive rains in South America and dry weather in South-East Asia seen hurting output. As per recent report, India sugar production has decline while Brazil is suffering from heavy rains and flood.
ICE sugar futures for July delivery settled up 0.47 cents or 2.4% at 19.95 cents per lb. It lost 7.1% this week. ICE confirmed on Wednesday a large delivery on the expiring May contract of around 1.67 million tons. Traders were split on the possible impact to the market of such a large delivery, which would usually be a bearish sign.
August London ICE white sugar contract rose $13.70 or 2.4% at $585.70 a metric ton.
Sugar production in Brazil's Centre-South region is forecast to total 42.3 million tons in 2024/25, StoneX said on Tuesday. Output in 2023/24 has been estimated by industry group UNICA at 42.4 million.
The global sugar market will have a small surplus of 800,000 tons in 2024/25, commodities trader Louis Dreyfus said on Tuesday, adding the outlook for Brazil was still uncertain.
Dealers said concern that hot weather in Thailand could damage sugarcane crops provided some support, as well as the dry weather in Brazil's Centre-South.
Meanwhile, on Monday, Thailand's Meteorological Department said that more than three dozen of Thailand's 77 provinces had posted record-high temperatures this month, with new highs beating records as far back as 1958.
The Indian Sugar and Bioenergy Manufacturers Association reported Monday that India's 2023/24 sugar production from Oct-Apr fell 1.6% on year to 31.4 MMT as more sugar mills closed for the year and ended their sugarcane crush. As of Apr 30th, 516 Indian sugar mills had closed operations compared with 460 mills that closed at the same time last year.
Citi maintained its forecast for another deficit in 2024/25 and for raw sugar futures to trade in the range of 22-25 cents per pound next quarter. "The international sugar market does not seem to have adequately priced in risks of crop downgrades for the 2024/25 CS Brazil season," Citi said in a note.
In recent times, Sugar prices drifted lower, hit by ideas of better supplies from Asia and Brazil, but dealers said the fall attracted some bargain buying on Thursday.
Elsewhere, Vietnam's Office of the Cane and Sugar Board reported that Thailand's 2023/24 sugar production from Dec-Mar was 8.75 MMT, above a Feb estimate from the Thai Sugar Millers Corp for sugar production of 7.5 MMT.
Ukraine is likely to have used up its proposed 2024 sugar export quota from the European Union by next month and could have to cut the area sown with sugar beet by up to 20% unless it finds other markets, a top official said on Thursday.
Commodity Futures Trading Commission (CFTC) data on showed speculators have increased their net short position in raw sugar by 9,659 lots to 37,684 lots.
For Wednesday, support for the Jul Sugar contract is at 19.55 cents and 19.16 cents, with resistance at 20.17 cents and 20.40 cents.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
