According to Reuters, ICE Futures U.S. for raw sugar October/March spread narrowed 30 percent prior to the spot contract's expiry. Meanwhile the March contract, the most-active contract, dropped to its lowest level on heavy global stocks. The spot raw sugar futures contract rose 5 percent following its open below the prior session's range on short-covering before the October raw sugar futures expiry on Sept. 30.
Raw sugar for October delivery climbed 4.3 percent to 14.08 cents a pound after investors gained from bets that prices would continue to decline following a five-year low during Friday's session, reports the Wall Street Journal.
Shawn Hackett, president of Hackett Financial Advisors in Boynton Beach, Florida said, "You get this kind of…short squeeze because the buyers of actual sugar want a lot and there [are] a lot of shorts that may not be willing to give it at this level considering the massive discount," according to Reuters.
Meanwhile, cocoa for delivery in December traded higher 2.1 percent at $3,328 a ton. This is the highest level reached since April 29, 2011 due to worries that West Africa's deadly Ebola virus could spread into neighboring top-cocoa growing countries, reports The Wall Street Journal.
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