ICE sugar fails to raise above 13 cents for third straight session
Published: 03/14/2018, 8:08:50 AM
ICE raw sugar futures tumbled to an 8-1/2-month low on Tuesday, on chart-based selling after failing to rise above 13 cents per lb for the third straight session, according to Reuters.
ICE May raw sugar settled down 0.31 cent, or 2.4%, at 12.62 cents per lb, after falling to 12.53 cents, matching two consecutive session lows reached in June.
Chart-based selling pressured prices after the spot contract again failed to breach the psychological level of 13 cents, traders said.
Light short covering by speculators on Monday dried up and producer hedging resumed, dealers said.
ICE May white sugar settled down US$5.70, or 1.6%, at US$353.70 per tonne.
The front month remained at a premium to the second position, suggesting potentially tighter nearby supply despite a large surplus expected this year, though it narrowed to US$4.10 from Monday's peak at US$6.40.
"We are not quite there yet and activity in Brazil has been adding some support," INTL FCStone said in a market update. "However, healthy supply in Thailand, India and Europe will offset this when supply reaches the market."