Investing.com – Sugar futures rebounded from a five-month low on Monday, tracking other commodities higher as risk appetite strengthened on hopes European leaders will boost efforts to tackle the region’s ongoing debt crisis, however concerns that global supplies are ample kept a lid on gains.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2316 a pound during European afternoon trade, climbing 1.45%.
It earlier rose by as much as 2.15% to trade at a two-day high of USD0.2329 a pound.
Market sentiment was lifted by reports that European Union leaders were moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
The news boosted appetite for riskier assets, such as stocks and commodities and prompted investors to shun the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.95% to trade at 79.07.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Some mild bargain buying also lent support after sugar prices fell to USD0.2272 a pound on Friday, the lowest level since early June.
Prices were expected to remain under pressure in the near-term as increasing competition for U.S. export sales has been weighing heavily on prices in recent weeks.
Brazil's largest sugar trading group, Copersucar said last Thursday that the country’s sugar production was forecast to rise to a record high in the 2011-12 marketing season.
Also last week, India approved an additional one million tonnes of sugar exports in the 2011-12 marketing season. The increase in shipments will bring total Indian sugar exports to a four-year high, underlining the view that global supplies are ample.
Brazil is the world's largest sugar producer and exporter, while India is the second largest producer of the sweetener.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery jumped 1.1% to trade at USD0.9188 a pound, while Arabica coffee for March delivery rallied 2.15% to trade at USD2.3790 a pound.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2316 a pound during European afternoon trade, climbing 1.45%.
It earlier rose by as much as 2.15% to trade at a two-day high of USD0.2329 a pound.
Market sentiment was lifted by reports that European Union leaders were moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
The news boosted appetite for riskier assets, such as stocks and commodities and prompted investors to shun the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.95% to trade at 79.07.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Some mild bargain buying also lent support after sugar prices fell to USD0.2272 a pound on Friday, the lowest level since early June.
Prices were expected to remain under pressure in the near-term as increasing competition for U.S. export sales has been weighing heavily on prices in recent weeks.
Brazil's largest sugar trading group, Copersucar said last Thursday that the country’s sugar production was forecast to rise to a record high in the 2011-12 marketing season.
Also last week, India approved an additional one million tonnes of sugar exports in the 2011-12 marketing season. The increase in shipments will bring total Indian sugar exports to a four-year high, underlining the view that global supplies are ample.
Brazil is the world's largest sugar producer and exporter, while India is the second largest producer of the sweetener.
Elsewhere on the ICE Futures Exchange, cotton futures for March delivery jumped 1.1% to trade at USD0.9188 a pound, while Arabica coffee for March delivery rallied 2.15% to trade at USD2.3790 a pound.