A lag in demand on the physical sugar market and building world stocks weighed on sugar prices, sending futures to multi-month lows on Tuesday. Benchmark ICE raw sugar futures for October delivery closed down 0.21 cent, or 1.3 percent, at 15.47 cents, after falling to their lowest since Feb. 12 at 15.44 cents, reports Reuters.
Sugar for August delivery dropped by Rs 9, or 0.30 percent, to Rs 2,997 per quintal with an open interest of 20,620 lots, according to The Business Standard.
A European trader told Reuters, "Physical values in Brazil crept lower this week even in the face of the futures decline. The problem we have is that the sugar is coming in Brazil at a very quick pace, at a time when the world market just doesn't need it."
The Business Standard reports that analysts believe removal of positions by speculators, which were due to this oversupply in the physical market and a decrease in demand from bulk consumers, have kept consistent pressure on sugar prices at futures trade.
October white sugar on Liffe settled lower by $5.30, or 1.2 percent, at $420.10 per ton, after dropping to $419.50, the lowest since Jan. 31, according to Reuters.
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