The week saw raw sugar ending up higher with March raws ending up 3% or 1 cent to close at 32.33 cents per pound. March white sugar gained 2.9 percent to close at $790.70 a tonne. On the technical front the next resistance level is seen at 33.3 cents while support is seen at 32 cents.
News on Indian exports and weather in Australia could swing sugar prices either way. Markets await news concerning India’s exports and forecast rain in Australia. Recent rain in Australia has negatively impacted the old crop as well as the new developing crop. Over 5 million tonnes have not been harvested and further rains could jeopardise the already saturated crop.
China may see an easing of demand for commodities as it seeks slower growth and to control inflation. However, China also needs to rebuild its inventories to satisfy demand. While in South America, Mexico expects to produce 0.5 million tonnes more sugar than during the 09/10 harvest.
In Berlin agricultural ministers from 48 countries said that they were concerned that speculation was causing volatility in international markets threatening food security and supply. The current protests in Tunisia were initially sparked off by rising food costs and lack of employment opportunities.