Sugar futures soared Friday, buoyed by macro economic data that was positive for sugar prices.
Raw sugar for March rose 3.7% to end at 14.63 cents a pound on the ICE Futures U.S. exchange, its highest close since Sept. 21.
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"Once again the market surprised those who did not expect a strong price movement, with the last trading session of the week totally opposite to the last few days," Lucas Oliveira at INTL FCStone said in a note.
Speculators in the market, the firm said, remain net short and rushed to cover those positions as the market broke through key technical levels.
The Brazilian real strengthened against the dollar, discouraging sales of dollar denominated goods like sugar which return higher sales in local dollars when the real is weak. Meanwhile, oil prices found continued support from expectations that major oil producers will extend an output-cut agreement through the end of next year.
When oil and ethanol prices are higher, sugarcane producers have a tendency to convert more cane to ethanol instead of sugar, boosting futures prices.
In other markets, cocoa for December lost 0.6% to end at $2,115 a ton, arabica coffee for December was up 1.7% at $1.266 a pound, frozen concentrated orange juice for January was up 0.2% at $1.5385 a pound and December cotton ended flat at 68.20 cents a pound.
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(END) Dow Jones Newswires
October 27, 2017 16:58 ET (20:58 GMT)