One day after climbing roughly 2.4 percent, the soft commodity lost value and pecked away at its top quarterly gains since 2010. Thus far this year, sugar futures are down more than 7 percent and are pushing toward a third consecutive year of losses. That would mark the sweetener's lengthiest losing streak since the early 1990s.
"The market found support yesterday at the March mid-Bollinger Band and recovered well, but physical demand has not been keeping pace, as evidenced by a large and weak October expiry," states a Tuesday email authored by broker James Kirkup with ABN Amro Markets U.K. Ltd. in London, according to Bloomberg. "The market is obviously digesting the news on the delivery."
At 8:51 a.m. on Tuesday, sugar futures fell 0.28 percent, a 0.0005-cent loss to 0.1809 cents per pound.
Reuters reports prices of sugar futures have been pinched in India during the past several months because of strong supplies and reduced demand from bulk consumers.
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