UK: raw sugar slips on ample supplies, ny eases from 2-month high

Raw sugar futures slipped on Monday as a global supply glut overshadowed signs that a bout of speculative selling could be petering out, while New York cocoa eased from its highest in over two months.

March raw sugar was down 0.04 cent, or 0.3 percent, at 13.59 cents per lb by 1156 GMT, after rising to 13.71. Speculators raised their net short position in raw sugar to a record 175,421 contracts in the week to Jan. 30, exchange data showed on Friday. While this signalled there is little scope for further speculative selling, dealers noted the focus remained on a persistent global supply glut.

“There does seem to be no escaping the bearishness in the market, with a number in the industry expecting the surplus environment to continue into 2018/19,” ING said in a market note. Dubai’s Al Khaleej Sugar Refinery has agreed to build a major agro-industrial complex to produce beet sugar under a deal signed with the Egyptian government, the world’s largest port-based sugar refinery said on Sunday. March white sugar fell $0.50, or 0.1 percent, to $357.60 per tonne.