Sugar futures fell to their lowest levels in 16 months on Wednesday after a report found production surged in Brazil in the first half of June. The commodity has rebounded a day later, spurred by some light buying from speculative investors.
July sugar futures rose 0.74 cents, or 5.9%, to 13.29 cents per pound at 16:55 GMT on Wednesday on the ICE Futures exchange. Sugar declined 1% during the Wednesday trading, dipping to its lowest level since February 2016. Sugar prices have had a horrendous 2017 as the commodity has tumbled 30%
Unica, an industry group, found that sugar production in the South American country’s main growing area has close to doubled in the first half of June compared to the same time a year earlier. According to the report,
Sugar has rebounded, primarily because of light buying performed by speculators, who are trying to build up fresh positions. Sugar futures have been unable to stay ahead of the
In 2017, sugar has failed to materialize any solid momentum or gains. Despite Mexico and the US signing an agreement to boost the sugar industry, sugar prices have been affected by surging supplies in India and Brazil – earlier reports had suggested Brazilian production would be weaker than expected.
Overall, analysts believe that the world could be left with a substantial surplus by the end of the year.
In other commodities, the market has been seesawing back and forth. July coffee futures jumped $0.01, or 0.86%, to $1.238 per pound. July wheat futures soared $0.235, or 5.19%, to $4.81 per bushel. July orange juice futures tumbled $0.063, or 4.56%, to $1.32 per pound.
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