Sugar futures on Friday advanced, salvaging a trade week that saw four-straight days of losses on commodity markets, according to Bloomberg.
Conjecture mounted that Brazil, the top generator of the soft commodity, is set to use more sugar cane for the purpose of producing ethanol.
"Ethanol production has picked up quite significantly in the last period of Unica's report, but it remains to be seen whether this continues to be the case," analyst Stefan Uhlenbrock with market research firm F.O. Licht GmbH told the news source on Friday. "The market has come down significantly, so it's more or less natural that there's some recovery sooner or later, but I'm rather pessimistic that this would be a sustained recovery."
At 9:38 a.m. on Friday, sugar futures rose 1.03 percent, a 0.0017-cent increase to 0.167 cents per pound.
The Economic Times reports analysts said the losses that the sweetener has endured as of late are correlated with profit-bookings orchestrated by speculators and reduced demand that has manifested at spot markets. They also noted that lower levels of production also contributed to the losses of the soft commodity.
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