Sugar Advances in New York as Speculators Curb Bearish Wagers
Sugar futures climbed for a fourth day in New York after speculators curbed their bearish bets.
Money managers and so-called non-reportables reduced their net short, or bet on lower prices, to 5,893 futures and options by Jan. 29 from 18,302 a week earlier, Commodity Futures Trading Commission data on Feb. 1 show. Petroleo Brasileiro SA (PETR4) said last week it’s raising gasoline prices. That may boost ethanol demand and encourage millers in Brazil to use more cane to make ethanol rather than sugar.
“The net short has started to be pared back for the first time in a while,” said Keith Flury, an analyst at Rabobank International in London, by phone. “Maybe people are reassessing the situation in terms of ethanol demand in Brazil.”
Raw sugar for March delivery climbed 0.3 percent to 18.95 cents a pound by 7:50 a.m. in New York on ICE Futures U.S. The fourth consecutive advance is the longest streak since Oct. 2. White, or refined, sugar fell 0.1 percent to $502.10 a metric ton on NYSE Liffe.
Cocoa rose 0.1 percent to $2,208 a ton on ICE and arabica coffee dropped 0.5 percent to $1.472 a pound.
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