MUMBAI(commoditiescontrol) – Raw sugar prices on the Intercontinental Exchange ended marginally up last week with support from strong crude prices and expectation of deficit in production next crop season but weak Brazilian Real limited the gains. On the other hand, ICE London white sugar was marginally down due rollover of contract form December to March.
The most tracked, Sugar no 11 or the March 2020 contract ended up 9 pints at 12.57 cents, while the London Mardh20 white sugar ended down $2.30/MT at $336.30 a tonne.
The latest CFTC data showed that managed money traders’ reduced their short position by 5913 contracts to 216735 contracts. Whereas trade was seen making fresh sales as their position shifted from net long of 4495 contracts last week to net short 16703 contracts.
The market has been trading in a narrow range of 10.88 cents /lb to 13.42 cents/lb.Market is facing a peculiar situation where there is ample supply in the short term but the high possibility of deficit in the long term.
The market may trade in this band for some time and eventually give a break out very soon. As there is very limited supply at current levels and with the passage of time clear picture for deficit for next crop year will emerge which will give a directional move to market.
Support and resistance for the March contract are 12.06-12.93 cents/lb .
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