ICE Sugar Rises on Production Deficit

Traders said sugar was supported by Platts Kingsman's forecast of a wider global deficit at 7.8 million tonnes in 2016/17 (October-September) because of higher-than-expected consumption.

Sugar markets have been underpinned by energy prices as more mills in Brazil divert cane towards producing ethanol.

Sugar futures were also supported by rains in Brazil's cane belt that is hampering the remnants of the harvest in the center-south.

"In southern-central Brazil, seasonal rains continued through the first half of December and are forecast to continue into next week, hampering the remaining harvesting efforts," said Michael Liddiard, consultant at Agrilion.

Raw sugar futures for March, the most active contract on ICE Futures U.S., were up 0.08 cent, or 0.55 percent, at 14.59 cents a lb. The contract has gained about 0.9 percent this week.

Analysts said concern over production shortfalls will remain supportive in the next session. The market will also continue to watch the movement of the Brazilian real against the U.S. dollar.

ICE Futures New York raw sugar is expected to test a support at 14.20 cents per pound, a break below could cause a further drop to 13.80 cents. Resistance is at 15.00 cents and 15.40 cents.

Freddy/VMN/VBN/Analyst-Vibiz Research Center
Editor: Asido Situmorang

http://vibiznews.com/2015/12/16/harga-gula-ice-menguat-terpengaruh-defisit-produksi/