World sugar market heading for lower prices?

摘要

Despite forecasts of a significant surplus in 2011/12, raw sugar prices are still relatively high and have been stuck in the range of 23-26 cents/lb during the past few months. In that respect, March was no exception. Front month raw sugar in New York(NY) started the month at 25.50 cents/lb and ended slightly lower at 24.71 cents. On March 15, raw sugar values rose by more than 100 points, while white sugar added USD21.1 per t. However, there was no fundamental change behind the rise. Traders said that some technical levels were broken that day which had sparked widespread buying. The buying frenzy lasted only one day, however, and prices went back into gear in the days that followed. The white sugar price in London displayed a similar picture. OnMarch 1, it reached USD646/t to end the month at USD643.60/t. The ISA (International Sugar Agreement) average for March was 24.10 cents/lb, hardly changed form the 24.12 cents seen during the previous month, and below the 26.24 cents recorded the same month last year.