Commodity Blog

Raw sugar declined again on Tuesday after touching multi-year highs over 20 cents per pound late last week, though the commodity failed to cement any gains above that important psychological level.

There are some signs of weakening demand in China due to the recent price spike. According to Agribusiness Intelligence, official data released by the Chinese General Administration of Customs shows that raw sugar imports fell to 140,000 metric tons in May, down over 74% from a year earlier.

Some analysts have been anticipating a looming correction, as prices have increased rapidly this year from a 12.45 cent low reached in February to the present price just below 20 cents per pound.

October raw sugar futures on the Intercontinental Exchange settled down 0.42 cents (2.1%) at 19.34 cents per pound. The lower-volume July contract settled down 0.45 cents (2.3%) to 19.24 cents per pound, posting losses in 6 of the last 8 trading days.

August white sugar settled down by $5.20 (1%) to $531.20 per ton.

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