ICE Raw Sugar Futures Edge Up, May Contract Settles at 13.6 Cents/lb

ICE raw sugar futures saw a slight rebound on Thursday after hitting a five-year low last Friday. The May contract rose 0.2% to settle at 13.6 cents per pound. Despite high oil prices, sugar's weakness suggests negative sentiment and significant oversupply. Drier weather in central Brazil is aiding the sugarcane harvest, while white sugar futures also increased.

Raw sugar futures traded on the Intercontinental Exchange (ICE) experienced a modest increase on Thursday, following a significant drop last Friday when prices hit a five-year low. The most actively traded May raw sugar contract saw a rise of 0.03 cents, or 0.2%, concluding the session at 13.6 cents per pound. Market analysts highlighted that the sugar price's inability to gain traction despite persistently high oil prices indicates a prevailing negative sentiment and substantial oversupply in the market. Commerzbank, in a recent note, underscored this point, stating that the decline in sugar prices amidst high oil prices points to negative sentiment and a significant surplus. Furthermore, meteorologists reported that drier weather conditions in parts of central Brazil, the world's leading sugar producer, are proving beneficial for the development of the sugarcane harvest, which is currently in its initial stages. Separately, the most active white sugar contract also posted gains, climbing 0.9% to reach $427.50 per tonne.