Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Sugar Drops Again on Diminished Demand Following Recent Price Rally

June 22, 2016 at 4:04 by Brent Lantzy

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.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu