The futures raw sugar prices on ICE fell to a four-month low on Tuesday, as a strong dollar and growing concerns about a global economic downturn weighed on the Petroleum and many other commodity markets.
The October raw sugar contract lost 0.27%, or 1.5%, at $17.80 cents a pound after plunging to a four-month low of $17.71 cents.
Traders said a sharp drop in crude oil prices helped lower future sugar prices, raising the prospect that mills could change their production mix to use more cane in processing the sweetener instead of ethanol.
They noted that Friday's CFTC report (01/07/2022) showed that speculators had largely liquidated a net long position in raw sugar.
A strong dollar, almost the highest in 20 years, was also seen putting pressure on prices.
“This US dollar strength is a bearish headwind for all dollar-denominated commodity markets,” said Peak Research.
White sugar for August was down $5.50, or 1.0%, to $548 a ton.
Crystal sugar closed down on Tuesday, the 50-kilogram bag was negotiated by the mills with a devaluation of 0.78% in the comparison between the days.
Hydrous ethanol, on the other hand, closed down yesterday, the biofuel was traded by the mills with a devaluation of 0.03% in comparison.
Source: investing.com
