ICE sugar jumps more than 5% on NAFTA deal
Published: 10/03/2018, 6:42:33 AM
Raw sugar futures rose more than 5% on Monday as new buyers entered the market and the most recent U.S.-Mexico-Canada trade deal boosted agricultural commodity markets, according to Reuters.
ICE March raw sugar settled up 0.41 cent, or 3.7%, at 11.61 cents per lb, earlier rising more than 5% to 11.79.
New buyers entered the market at the start of the final quarter of the year and less producers sold, according to a New York soft commodities trader.
"A combination of a bullish day for agriculture markets in general because of NAFTA is helping," said Shawn Hackett, president of Hackett Financial Advisors in Boca Raton, Florida.
The United States, Canada and Mexico announced they have reached a deal on a trilateral pact to replace NAFTA.
The Thomson Reuters Core Commodity Index, measuring a basket of commodities, was up more than 1%.
A stronger Brazilian real also helped boost raw sugar prices, traders said.
ICE December white sugar settled up US$6.70, or 2.1%, at US$327.20 per tonne, after falling to US$313.70.