ICE sugar recovers from previous session’s sharp losses
Published: 06/28/2018, 7:32:19 PM
Raw sugar prices on ICE rose on Thursday, recovering some ground after tumbling sharply in the prior session, according to Reuters.
ICE October raw sugar was up 0.17 cent, or 1.4%, at 12.22 cents per lb by 1109 GMT.
Prices tumbled sharply in the previous session, pressured by a slump in the Brazilian real currency, which encourages producer hedging.
"Producers would be quick to take advantage of better domestic currency revenues - fleeting as that proves to be," Commonwealth Bank of Australia analyst Tobin Gorey said in a market note.
The weakness triggered a further wave of chart-inspired selling after prices fell below the 10-day and 50-day moving averages, dealers said.
On Thursday, light speculative short-covering and profit-taking helped steady the market, improving the technical structure, they said.
Market focus was on the July raw sugar expiry on Friday, with dealers expecting mostly Brazilian supplies to be delivered against the contract.
ICE August white sugar rose US$5.90, or 1.7%, to US$348.30 a tonne.
The August/July whites premium - which reflects refining margins - rose above US$80 per tonne on Thursday, with dealers noting it was supported by expectations that Indian and European Union producers would not deliver at current prices.