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White sugar surges, rebuilds after setback

London, March 13, 2010

May white sugar futures jumped 4 per cent to a session high of $553 per tonne on investor short covering as the market began to rebuild after a steep setback in prices in the last month.

"There's some spec short covering with the dollar weaker," said Nick Hungate, executive director of Rabobank. "Physical buying has picked up in the last few days."

Dealers noted signs that demand may be beginning to revive with Egypt buying raws this week and a Reuters report on Friday that Chinese buyers bought Australian sugar.

Queensland Sugar, which sells most of Australia's sugar to overseas customers, sold raw sugar to Chinese buyers, trade sources said yesterday (February 12).

Guatemala is seeking to import up to 100,000 tonnes of sugar to stop domestic sugar prices from spiking, the economy minister said on Wednesday.

Raw sugar futures had slid more than 35 per cent from a 29-year peak touched on February 1. Benchmark May raw sugar on ICE was up 0.63 cent or 3.3 per cent to 19.90 cents a lb at 1217 GMT.

London (Liffe) May white sugar was up $16.1 or 3 percent at $547.80 per tonne in moderate volume of 1,676 lots. – Reuters




Tags: Egypt | London | futures | Queensland | Liffe | May sugar |

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