March ICE sugar hits 4 month high
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ICE March sugar pushed to 13.65 cents (May reached 13.86) in trading today ahead of the expiration of the March contract on Friday. This is the highest level since Oct08. The rally is a confluence of part tag-along to the rally in energy (WTI crude currently up +4%), part perceived higher ethanol demand, and part speculation on a wider S-D gap for the current crop year, which as we have been discussing is largely attributable to a short crop in India. WTI will be releasing our updated S-D number for world sugar during the first week in March.
