ICE sugar consolidates earlier gains
Published: 01/30/2018, 5:50:37 PM
ICE raw sugar futures on ICE were lower on Tuesday with the prior session's advance stalled by surplus supplies, according to Reuters.
ICE March raw sugar was off 0.08 cents, or 0.6%, to 13.59 cents per lb by 1302 GMT after rising to a peak of 13.71 cents, its highest in almost two weeks.
Dealers said the market rose on Monday on data that showed speculators held a sharply increased net short position, a possible signal that the selling spree was about to end.
But the market continued to be weighed down by the prospect of a substantial global surplus in the 2017/18 season and the potential for producer selling on the back of any rally.
"Producer selling certainly lies in wait on a rally but we suspect the market needs to rise to above 14 cents before it starts becoming influential," said Sucden Financial senior trader Nick Penney in a market note.
ICE March white sugar fell US$2.00, or 0.55%, to US$359.40 per tonne.
Pakistan has hiked the amount of sugar eligible for export subsidies to 2 million tonnes from 500,000 tonnes, in a bid to reduce excess domestic supplies, the U.S. government said in a report published on its website on Monday.