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NEW YORK (Dow Jones)--World raw sugar futures on the
Coffee, Sugar & Cocoa Exchange settled sharply lower
Wednesday on concerns about an oversupply of sugar due
mainly to huge crops in Brazil and the European Union, amid
limited demand for sugar, traders and analysts said.
(Closing prices in cents/pound, dollars/metric ton.)
NY 11 Change Range Liffe 5 Change
May 9.51 -0.28 9.45-9.80 May 251.60 -6.40
Jul 9.21 -0.30 9.10-9.51 Aug 256.80 -6.30
Locals pushed the market down early, triggering sell
stops, which prompted speculative liquidation, said a
physical trader.
Short covering by the trade gave prices a boost near the
end of the session, he said.
The market's upside potential will be limited in the
coming sessions because producers will sell into rallies,
said the trader.
""I don't know if the outlook is bleak, but it's not
positive. We may dip under 9.00 cents,"" said Walter Spilka,
softs analyst with Salomon Smith Barney. ""It's inevitable
that sugar prices are going to slip each day we get closer
to Brazil's crop. It's inevitable that it will get shipped
on the market.
""Does the market really need the sugar?,"" he added.
""Probably not.""
The European Union's record crop and selling by Thailand
also are weighing on prices, he said. ""Thailand is trying to
sell the rest of its crop before the Brazil crop comes to
the market.""
Meanwhile, physical demand for sugar hasn't been active,
he said. ""Buying is more erratic.""
-By Janet Whitman; 201-938-2208
Janet.Whitman@xxxxxxxxxxxxxxxx
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