Reuters - Sugar retreats from 5-week high

January 03, 2018 at 11:35 AM


March raw sugar settled down 0.02 cent, or 0.13 percent, at 15.31 cents per lb after peaking at 15.37 cents, its highest since Nov. 28.

Expectations that index funds will buy about 60,000 lots in the coming days to rebalance their investments after sugar’s poor performance in 2017 have bolstered prices in recent days.

But focus on bearish fundamentals returned after closely-watched commodity analyst Green Pool on Wednesday raised its projections of a global surplus in 2017/18 to 10.43 million tonnes, up from a forecast of 9.8 million. [nL8N1OY1Q7

“There remains some disconnect between current market prices and the potential for a surplus of the size we are forecasting,” Green Pool said in a report.

An industry body in India said sugar output in the fourth quarter of 2017 rose by 26 percent year-over-year.

March white sugar finished up $0.7, or 0.18 percent, at $399.30 per tonne.

Tags: Green Pool