Upward trend driven by physical buyers

Australia is now thought to have lost 10% of its 2011/12 sugar production as a result of cyclone Yasi. This amounts to 380,000 tonnes and takes Australia slightly below its 2010/11 production.

News from Australia and India concerning a revised outlook for production and doubts concerning its OGL sugar exports have given sugar prices support. There may be a bullish trend in the short term. The drop away from recent peaks has allowed physical buyers to step in.

White sugar futures rose by 1% to close just shy of $800.

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