White Sugar Climbs Off 2-1/2 Year Low

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Image Credits: par.com.pk

August white sugar was up $1.70, or 0.5 percent, at $336.90 by 1400 GMT, pulling away from Wednesday’s low of $332.30, the weakest for the second position since August 2015.

Dealers noted light scale-down buying had emerged near the lows, which was lending support.

“The trading pattern still suggests the market is finding substantial pockets of buying at each new low,” said Tobin Gorey of the Commonwealth Bank of Australia in a market note.

However, dealers said gains were limited as the market remained vulnerable to selling by producers, who remain under-hedged.

Focus also remained on ample global supplies from India and Thailand.

May white sugar, which expires on Friday, rose $3.60, or 1 percent, to $349.80 per tonne.

The front-month premium over August widened to more than $12, with dealers noting this signalled sellers were hesitant to deliver at current prices.

May raw sugar rose 0.03, or 0.3 percent, to 12.09 cents per lb, after also touching a 2-1/2 year low on Wednesday.

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