Soft Commodities Price Watch: Sugar Extends Gains While Soybeans and Grains Struggle
This week has started off much where the last one ended, with grains and soybeans on the back foot with market players looking ahead to a weekly update on U.S. planting progress, and raw sugar futures in recovery mode, with speculation investors having started to buy futures after bearish bets reached a record and millers in top producer Brazil directed more cane to making ethanol.
The raw sugar price for delivery in October on ICE Futures U.S. in New York rallied as much as 3.6 percent in the last trading session on Friday to $0.1712 a pound, a one-month high. Price gains followed a rally in ethanol futures on the BM&F Bovespa, Brazil’s futures exchange, a day earlier.
According to data released today by Brazilian cane industry group Unica, millers in the centre south, Brazil’s main cane-growing region, used 58 percent of all the cane processed to make ethanol at the expense of sugar in the second half of May, up from 52 percent a year earlier. Further boosting the sugar price, large and small speculators excluding index funds boosted their net-short position, or bets on lower sugar prices, to a record 121,030 contracts in the week ended June 11, U.S. Commodity Futures Trading Commission data has shown.
By 07:00 ET today, raw sugar for delivery in October was 0.41 percent higher at $0.1716 a pound, after rising to $0.1724, the highest since May 14, earlier during today’s New York session. White, or refined, sugar for delivery in August added 1.4 percent to $491.20 a metric tonne on NYSE Liffe in London.
**Soy and Grain Prices in Downwards Trajectory**
While sugar has extended its bullish run, soybeans have sunk to a two-week low under pressure from forecasts of crop-friendly weather across the U.S. grain belt.
The soybean price has been well-supported in recent weeks by concerns over U.S. planting prospects. The oilseed rallied to a seven-month high of $15.5850 a bushel on June 12.
Yet, soybeans futures for July delivery on the Chicago Board of Trade (CBOT) currently are trading at $15.0863 a bushel, down 0.5 percent on the day. The July contract fell by as much as 1.5 percent earlier in the session to hit $14.9338 a bushel, the lowest level since May 30.
!m[Corn and Soybeans Fall to Multi-Week Lows on Favourable U.S. Crop Prospects](/uploads/story/3133/thumbs/pic1_inline.png)
Elsewhere on the CBOT, December corn was down 1.03 percent to $5.2750 a bushel as of 08:00 ET today.Corn futures for July delivery traded at $6.5650 a bushel, up 0.25 percent on the day.
The wheat price has also lost ground, with the July contract trading at $6.7888 a bushel, down 0.2 percent. Earlier today, the price of the soft commodity slid by as much as 0.7 percent to hit a session low of $6.7475 a bushel, the lowest since May 21.
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