Raw-sugar futures for May delivery rose as much as 16 cents a pound. Prices across the broader commodities complex were lifted Friday by a more cautious attitude this week about further U.S. interest-rate increases by the Federal Reserve. The market also has been boosted partly by a strengthening in Brazil's real currency amid massive anti-government protests. Brazil is the top producer of both sugar and coffee and the real's strength has made exports less attractive in local currency terms.
M any traders believe a change in government would be the first step in rebuilding investors' trust in Latin America's largest economy.
E xpectations of a smaller Asian sugar crop also have led analysts to boost their estimates for the global sugar deficit this year. R abobank said Monday that consumption will exceed production by 6.8 million metric tons in 2015-16, 2.1 million tons more than its previous forecast. T he deficit comes after five years of production surpluses.
May futures, the contract most actively traded, fell 0.02 cent, or 0.13%, to settle at 15.97 cents a pound on ICE Futures U.S. in New York.
For the week, ICE sugar rose 5.55%, boosted by a rally in Brazil's real and concerns about a production deficit.
Analysts at Vibiz Research Center said that New York raw-sugar futures are likely to strengthen as concerns about production deficit and the strengthening of the real due to Brazil's political conditions persist.
ICE raw-sugar futures may test resistance levels at 16.50 cents and 17.00 cents. Support levels that would be tested if prices weaken are at 15.50 cents and 15.00 cents a pound.
Editor: Asido Situmorang
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