ICE sugar eases after short-covering rally
Published: 02/13/2018, 4:34:23 PM
Raw sugar futures were lower on Tuesday, with the market back on the defensive after the recent short-covering rally, pressured by plentiful global supplies, according to Reuters.
ICE March raw sugar was off 0.15 cents, or 1.1%, at 13.58 cents per lb at 1302 GMT.
Dealers said the market's run-up, which lifted the front month above 14 cents last week, had run out of steam but the market remained well within its recent trading range.
"The picture hasn't changed. There is still plenty of sugar around," one dealer said.
Dealers noted that the whites premium had improved slightly from recent depressed levels, with the focus on the expiry of March whites on Tuesday.
"It looks like the delivery is going to be a lot smaller than everyone thought," one dealer said, adding that about 100,000 tonnes of Central American sugar could be tendered.
ICE May whites were down US$0.90, or 0.25%, at US$360.10 a tonne.