Profit taking following the rallies of the past few days and price spikes has resulted in raw sugar futures dropping by almost 10% closing at 32.04 cents per lb. Near month white sugar futures were also down by $30 to close at $814.20 per tonne.
The overall sentiment beyond the spring, subject to no significant supply/weather changes, is bearish. An improved outlook for Brazil’s center south which may be forecast to crush more cane than forecast is adding downward sentiment concerning prices. The improved outlook for the centre south due to recent rains after poor weather earlier and the possibility of improved supply forecasts elsewhere, such as under India’s OGL, raises the prospect of offsetting any negative impacts and losses resulting from cyclone Yasi.