ICE Sugar Prices Rise on Europe and India Climate Concerns

Sugar futures traded on the Intercontinental Exchange (ICE) saw a rebound on Tuesday. The July raw sugar contract closed up 0.07 cents, or 0.5%, at 13.42 cents per pound, moving away from the previous session's two-month low of 13.26 cents per pound. Brokers attributed the price increase to growing concerns over adverse weather conditions in key sugar-producing and consuming regions. Specifically, hot and dry weather across Europe is feared to be detrimental to sugar beet crops, potentially impacting the continent's sugar output. Concurrently, below-normal monsoon rains in India, the world's largest sugar consumer, raise the specter of reduced production in the country. Market observers also noted that the recent price depreciation was partly due to speculators increasing their net short positions, set against a backdrop of falling energy prices. However, the latest rally suggests a shift in market sentiment as supply risks come back into focus. Additionally, the most active white sugar contract saw a 0.2% increase, settling at $441.10 per tonne.