Middle East tension and weaker dollar keep sugar market on edge

Protests have been broken up in Bahrain where two protestors were killed. The protesters are primarily from the Shiite majority. Protests are also planned tomorrow in Libya. Meanwhile Iran has announced that two of its war ships are to pass through the Suez Canal for the first time since 1979.  Israel has announced that it viewed the move as a hostile act.

Renewed tensions in the Middle East following the Tunisian and Egyptian revolutions, yesterday resulted in a sharp rise in the Brent crude futures contract which closed at $103.78 per barrel.  Rising oil prices provide ethanol and sugar futures with support and along with  a weaker dollar, with further dollar weakness expected, March raw sugar futures ended up 3% to close at 31.54 cents per lb.

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