ICE sugar edges slightly higher
Published: 02/14/2018, 3:26:59 PM
ICE raw sugar futures on ICE edged up on Wednesday, boosted by light corrective buying, according to Reuters.
ICE March raw sugar was up 0.04 cent, or 0.3%, at 13.52 cents per lb by 1224 GMT, steadying after a decline in the prior session.
Dealers pointed to light short-covering by speculators, who still hold a large short position in the market.
However, they noted plentiful global supplies remained in focus, amid strong production from the likes of India and Thailand.
"Short-covering from the specs is probably the only bullish feature in the market," said one dealer. "From a supply and demand perspective, there's a lot of availability of sugar around and not enough demand."
ICE May white sugar was up US$0.30, or 0.1%, at US$360.50 a tonne.
A total of 36,600 tonnes of white sugar were tendered against the March contract that expired on Tuesday, ICE Futures Europe said, confirming dealer reports.
Dealers said sentiment was slightly improved by a partial recovery in refining margins, after white sugar was boosted ahead of an expiry on Tuesday, widening its premium over the raws market.
The premium for the May whites contract over the May raws position rose above US$63 per tonne on Wednesday.
Dealers noted both markets remained vulnerable to producer pricing, however, which was keeping a lid on gains.