On Wednesday ICE raw sugar futures were down, trading near the previous session's lowest level in over seven months. Futures were pressured by rapid production in center-south Brazil. Sugar output from Brazil's main cane region climbed ahead in the period while mills crushed cane at the highest volume seen so far this season in a half-month timeframe, according to Reuters.
BusinessWeek reports that raw sugar declined 9.3 percent in New York on cues of abundant global supplies. Liffe October whites were down $5.60 or 1.4 percent lower at $400.00 a tonne.
Stefan Uhlenbrock, a senior soft commodities analyst with F.O. Licht said, "The market is really very bearish. The traders have a lot of sugar to place, and the strong pace of crushing in Brazil is putting a lot of pressure on the market," according to Reuters.
Meanwhile, cocoa futures were little changed, with focus on robust demand and crop conditions prior to West Africa's main harvests beginning in October. According to BusinessWeek, wheat futures fell 13 percent in Chicago this year amid forecasts that global production will jump to a record high. The government forecasts have Australia, the fifth-biggest wheat exporter, set to harvest 24.2 million metric tons.
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.