[ICE sugar market] ** buying prices drove the price of sugar soaring 4.1%

Dow Jones News from New York City, affected by uncertainties in the prospects of Pakistan's imports of 500,000 tons of sugar and India's sugar production. With the continued influx of hot money, the raw sugar futures price of ICE sugar market this Tuesday hit the highest since June and a half. point.

On the 10th day of the same day, the price of sugar rose by 85 points (+4.1%) to close at 21.45 cents/lb, the largest one-day gain since August 10th, and the 1010 session of sugar price on the same day hit the March 9th at a time. Since 21.52 cents per pound, the highest point; 1103 period, about the same time the price of sugar soared 83 points to close at 20.96 cents / pound.

Since the 13-month low of 13 cents/lb in early May, the price of sugar has risen by 60%.

Stalin Smith, an analyst at the National Hedging Co. of Minnesota, United States, said that not only hot money continues to flow into the sugar market, but also funds have increased investment in the food industry. Of course, the 1010 period is about 20 cents/lb. The top run played a key role in the continued rise of the sugar market.

Those buyers who waited and watched due to expected sugar production at 10-11 years of sugar production or a record high in Brazil at the beginning of this year when the international sugar price rose strongly are the main reasons for the continued rise in sugar prices.

A London businessman stated that despite the sugar production of Brazil in the new sugar production year, the buyer suddenly found that the supply of sugar in the market is still tight, unless the supply of sugar on the market does increase, otherwise, the market is worried about tight supply. It will continue.

Paul Haler, executive vice president of the Linn Group, said that although the trend of the ICE sugar market has been very strong for some time, 21.60 cents/lb may be a hurdle. Once it breaks 21.60 cents/lb, the price of sugar may be straight. Refers to the high of 22.77-22.78 cents/lb between January and February this year. Unsurprisingly, the 1010 sugar price will be very difficult to run at 21.50-22.50 cents/lb, because the sugar market may face the pressure of long exits and profit-taking, thus increasing the price of sugar by 21.60. Points/lbs difficulty.

According to a spokesman for the Pakistani government, due to flooding in domestic sugar production, in order to meet the growing domestic demand, Pakistan may have to import 500,000 tons of sugar. Iskandar Khan, chairman of the Pakistan Sugar Association (PSMA), said that if raw sugar is imported and processed into white sugar, it will save more money than directly importing sugar. It is estimated that 500,000 tons of sugar will be imported in December.

ICE sugar market this week due to the holiday of the United States Labor Day, investors opened the market on Tuesday after the Indian Minister of Agriculture immediately responded to a statement. Indian Agriculture Minister Sharad Pawar said recently that India’s sugar production in the estimated 10-11 sugar crops to be started can only reach a level of 22 million tons, which is far below the general market expectations.

Nick Penney from Sucden Finance stated that it is widely expected in the market that India’s sugar production will rise to 25 million tons in 2010, and the Indian Agriculture Minister’s expectations are clearly too low.

According to the data released by the US Commodity Futures Trading Regulatory Commission (CFTC) on Friday, the fund's net long position in the ICE sugar market had increased from 111,106 lots in the previous week to 115,815 in August 31st.

In addition, Tuesday's sugar market price in London sugar also rose sharply across the board. On the same day, the price of sugar in the 1010 period rose sharply by US$10.60/ton to US$605.80/ton. In the 1012 period, the price of sugar rose sharply by US$9.70/ton to 558.60. USD/ton to close.

According to the data released by the Exchange, the trading volume of sugar in the ICE sugar market this Tuesday was approximately 133,726 contracts. The volume of call options was approximately 25,941 contracts, and the number of put options was approximately 11,713 contracts.

The closing prices of the two major international sugar markets were as follows (close price unit: ICE Sugar Market: US cents/lb; LIFFE Sugar Market: USD/ton):

ICE sugar market volatility fluctuation range LIFFE sugar market ups and downs 1010 21.45+0.85 20.70-21.52 1010 605.80+10.60

1103 20.96+0.83 20.25-21.00 1012 558.60+9.70