ICE sugar slips to 2.5 month low

Published: 07/12/2018, 6:14:12 PM

Raw sugar futures fell to their lowest in 2-1/2 months on Thursday, pressured by technicals and lingering concerns about abundant supplies, according to Reuters.

ICE October raw sugar was down 0.16 cents, or 1.4%, at 11.13 cents per lb by 1046 GMT. It earlier touched 11.08 cents, the lowest level since late April.

Dealers said sentiment was partly dampened by the previous session's weak close on broader weakness in commodity markets and a decline in the Brazilian real.

Prices fell further on Thursday after slipping below key technical support levels, which triggered automatic sell orders and attracted fresh short-selling, dealers said.

Focus also remained on ample global supplies, though participants were monitoring dry weather in Brazil that could curb output further.

 "The region is now much drier than a month ago," said Tobin Gorey of the Commonwealth Bank of Australia. "And with little prospect of meaningful rainfall soon, the dry period is now growing into something more serious."

ICE October white sugar fell US$2.70, or 0.8%, to US$328.60 a tonne.

Suedzucker reported a 49% drop in first-quarter operating profit on Thursday, with Europe's largest sugar refiner pointing to a slump in prices.