Sugar futures notched their seventh straight session of gains Monday as sugar bulls return to a beaten-down market.
Raw sugar for March was up 1.1% to end at 15.13 cents a pound on the ICE Futures U.S. exchange, it's highest close since May 25.
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Agrilion Commodity Advisers said the market has now priced in the surplus for the 2017-18 season, while there is still very little weather risk priced in, which could create a larger upside move if a strong La Nina develops.
Sugar has been one of the most beaten-down commodities in the complex this year. The firm said much will depend on whether or not unhedged producers decide to lock in prices in this price range or continue to hold back for a longer rally.
In Brazil, the world's largest growing region, much will also depend on if producers continue to favor converting more cane to ethanol due to recent favorable pricing.
"Through the first half of the year, Brazil was utilizing more of its sugarcane for sugar than ethanol but has since reverted back to ethanol being favored. This is expected to continue and helping to lift sugar prices," J. Ganes Consulting LLC said in a note.
Cocoa for March lost 0.5% to end at $2,201 a ton, arabica coffee for December ended flat at $1.276 a pound, January frozen concentrated orange juice lost 1.2% to end at $1.606 a pound and December cotton ended down 0.3% to close at 69.14 cents a pound.
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(END) Dow Jones Newswires
November 13, 2017 18:12 ET (23:12 GMT)