Raw sugar futures extended gains due to a revised 2014/15 crop forecast by the industry association Unica, expecting Brazil's center-south cane crush to be lower than original expectations of 580 million tons in April at 546 million tons. The country's sugar output was pegged lower than the 32.5 million tons forecasted in April at 31.36 million tonnes, reports Reuters.
Brazil's main growing region's sugar output is still 6.4 percent higher during the season through the first half of August. According to the latest outlook from the London-based International Sugar Organization, it's possible that the global sugar market will register an oversupply of 1.31 million metric tons for the season.
The ISO said, "Any possible price recovery brought by production shocks over the course of 2014-15 might be muted by the huge stocks accumulated since the beginning of the surplus phase in 2010-11," according to The Wall Street Journal.
Benchmark ICE October raw sugar futures climbed above the seven-month low hit on Monday by 0.07 cent, or 0.5 percent, to 15.78 cents, while October whites on Liffe rose $3.10, or 0.7 percent, at $431.80 per ton, reports Reuters.
Meanwhile, cocoa for December delivery traded down at 0.1 percent to $3,216 a ton and cotton for December delivery rose 1.1 percent to 66.89 cents a pound.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.