ICE sugar slips slightly with eye on March expiry
Published: 02/27/2018, 12:59:35 PM
ICE May raw sugar was down 0.05 cents, or 0.4%, at 13.61 cents per lb., according to Reuters.
Dealers noted front month March was maintaining a premium to May in the run-up to its expiry on Wednesday.
"The pricing continues to look like the market has rolled the surplus to later in the year. The New York March contract will expire on Wednesday to finalise the issue," Commonwealth Bank of Australia analyst Tobin Gorey said.
A substantial global surplus is still widely anticipated in the 2017/18 season, driven partly by rising production in top consumer India.
India's sugar production is likely to rise to a record 29.2 million tonnes in the 2017/18 season, up nearly 12% from a previous estimate as Maharashtra state's output could more than double, according to a survey of global and local dealers.
ICE May white sugar fell US$0.30, or 0.1%, to US$359.10 a tonne.