Today ICE raw sugar October futures touch seven month highs of 25.60 cents per lb subsequently falling to close lower on the day at 24.30 cents. London white sugar also closed lower at $607.80 per MT. Despite investors buying sugar futures and rumours of demand from Pakistan sellers pushed the contract lower.
While gold reached new highs sugar fell along with other soft commodities despite Brazil being hit by a dry spell raising fears that supply will be impacted. Russia is also thought to be holding 5m tonnes in stock less than previously claimed. Despite both these factors and Pakistan expected to be in the market for sugar shortly, futures were unable to sustain their seven month highs. This despite a long line up of ships at Brazilian ports loading sugar.
The rise may have been unsustainable due to rains forecast in south-east Brazil which is likely to ease concerns over supply.