ICE sugar falls sharply on weak Real
Published: 06/07/2018, 5:00:29 PM
Raw sugar futures on ICE fell sharply on Thursday as a weak Brazilian currency weighed on prices, according to Reuters.
ICE July raw sugar fell 0.47 cents, or 3.85%, to 11.73 cents per lb by 1352 GMT, after hitting a low of 11.71 cents, the weakest price for the front month since May 21.
Dealers said the weakness of Brazil's real currency helped put the market on the defensive, making sales more attractive in local currency terms to producers in the world's top exporter.
"We broke Monday and Tuesday lows (of 11.86 and 11.88 cents respectively) and there were a few sell-stops that went off," one London dealer added.
India's decision to build a buffer stock and grant soft loans worth 44.4 billion rupees ($661 million) to help millers expand ethanol output capacity had been expected but did provide some background support.
"The steps are likely to cut down on excess supplies and tighten the market," ING said in a market note.
ICE August white sugar fell US$8.70, or 2.5%, to US$338.60 a tonne.