Mumbai, 8 Jan (Commoditiescontrol): Sugar prices snapped it losing streak, ending the firs-week of 2024 on a positive note even as the commodity witnessed a robust supply prospect. The natural sweetener benefited from supportive underlying trend, which helped it reverse some of the previous losses. Remember, it ended 2023 on a positive note by clocking a back to back year of gains.
ICE raw sugar prices ended mostly unchanged on Friday, benefiting from firm tone in crude oil prices and small sugar production in India raised global supply concerns. That also helped natural sweetener to snap recent streak of weekly losses.
The National Federation of Cooperative Sugar Factories reported India's sugar production from Oct 1-Dec 31 totaled 11.2 MMT, down 7.6% on year.
ICE sugar futures for March delivery settled little changed at at 21.11 cents per lb. It gained 2.5% this week.
March London white sugar contract stayed flat at $607.10 a ton. The contract advanced nearly 2% during week.
Dealers said market attention had shifted back to better-than-expected production in major exporters Brazil and Thailand, although dry conditions in Brazil could weigh going forward.
In recent times, the natural sweetener is overwhelmed by bearish factors, including improved global supply conditions. Major exporters Brazil and Thailand are witnessing strong production. Brazil exported 75% more sugar in December from a year ago, the government said. Thailand is expected to produce 8-8.5 million tonnes of sugar in the 2023/24 production year.
China's sugar output in the 2023/24 season is seen at 3.2 million metric tons, down 60,000 metric tons from a year earlier. Recently, China's National Development and Reform Commission (NDRC) pegged sugar imports in 2023/2024 at 5 million tons, slightly up, while consumption is expected to steady at 15.5 million tons.
Meanwhile, Egypt's state grains buyer is seeking 50,000 metric tons of raw cane sugar and/or 50,000 tons of white sugar in a tender. Egypt's sugar reserves are sufficient for 5.2 months, the country's state news agency said.
French sugar major TereosTEREO.UL said its sugar output in Brazil grew 19% in the 2023/2024 harvest, along with better-than-expected sugarcane crushing.
Elsewhere, India, the world's second-largest sugar maker, is likely to produce 32.5 million tons of sugar in the 2023/24 marketing year that began on Oct. 1, an industry body said.
Indonesia has set this year's sugar import quota at 4.77 million tons for industrial use, a trade ministry official said on Thursday, up from a quota of 3.6 million tons in 2023.
The International Sugar Organization (ISO) bearish outlook too impacted prices. The global sugar body has raised its 2023/24 global sugar production (Oct-Sep) estimate to 179.9 MMT from a previous estimate of 174.8 MMT and cut its 2023/24 global sugar deficit to 335,000 MT from a prior forecast of 2.1 MMT.
Trading Commission (CFTC) data on Friday showed speculators added only 158 lots to their net short position in raw sugar to 1,465 contracts.
Recent reports on sugar output from various research outfits such as Unica, suggesting a growth in Brazilian production, has helped cut global deficit prospect. However, drought conditions in the growing region such as Thailand remains a big challenge, which incidentally forced analysts to readjust their production estimates and availability of the sweetener.Overall, the bullish price pattern remains unaltered though funds have decided to cut their long position. A clarity on production in necessary before taking a fresh bet.
For Monday, support for the March Sugar contract is at 20.74 cents and 20.36 cents, with resistance at 21.35 cents and 21.58 cents.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
