ICE sugar jumps 4% ahead of expiry
Published: 03/01/2018, 7:30:27 AM
Raw sugar futures surged 4% on Wednesday, rebounding from an eight-month low on heavy short-covering ahead of the March contract's expiry at the end of the session, according to Reuters.
ICE May raw sugar settled up 0.51 cent, or 4%, at 13.38 cents per lb after earlier dipping to an eight-month low of 12.82 cents.
Prices rallied on short-covering, though the overall trend remained bearish due to more than ample supplies, dealers said.
"The fundamentals have been weak for so long now and getting more bearish at each upward estimate of India, Thailand and EU output," said Sucden Financial senior trader Nick Penney in a market note.
Dealers said the prospect of producer selling would make it difficult for the market to sustain a recovery in prices.
The March contract settled up 3.6% at 13.48 cents, a 0.1-cent premium over May SBH8-K8.
Trade houses Alvean and Wilmar International Ltd have scooped up about 742,500 tonnes of raw sugar against March, traders said.
ICE May white sugar settled up US$10.80, or 3.1%, at US$361.30 per tonne. The front month had slid to a low of US$349.50 on Tuesday, its weakest since September 2015.