Center south, the primary growing district in Brazil, utilized 58 percent of all the sugar cane that was processed to produce ethanol from sugar during the second half of last month, according to data released by industry group Unica. As compared to the second half of May from last year, that represents an advance of 52 percent in supplies.
"The rally was partly explained as a late reaction to the Unica figures," states a Monday report emailed to the news service by Kingsman SA. "We may have seen a temporary bottom, but it is too early to say whether it becomes more than that. The funds, however, are very short and once they start short-covering their buying may snowball."
At 9:17 a.m. on Monday, sugar futures fell 0.29 percent, a 0.0005 cent slide to 0.1704 cents per pound.
The sweetener last week dipped in value and neared its lowest value in three weeks, Reuters reports.
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