Prices for raw sugar fell due to concerns about the plentiful supply and weak demand
On Friday, the price of sugar falling, dropping to 4-month lows. Speculative market participants have started to actively sell because of concerns about the increase in supply and low demand.
March futures on raw sugar on ICE Futures recently dropped in price by 1.9% to 19.00 cents a pound.
In early October, the price of sugar reached a maximum of 4 years, after which in recent weeks have fallen by about 20%.
Analysts said speculative participants previously relied on the fact that for the second year in a row there will be a shortage of supply on the world sugar market. However, investors ignored the macroeconomic factors and fundamentals of the sugar market, which may limit the rise in prices.
Meanwhile, the March futures for Arabica coffee recently, rose in price by 1.9% to 1.4755 dollars per pound.