Strength of Brazilian Real Triggers Short Covering in Sugar Futures

Reported 1 day ago

Sugar prices saw significant increases in early September due to a rise in the Brazilian real, which discouraged exports and prompted short covering in the market. The Brazilian real hit a 15-month high against the dollar, leading to short buying from funds heavily positioned against sugar. Despite forecasting a global sugar deficit for the upcoming season, concerns about India's potential increase in sugar exports and higher-than-expected production levels in Brazil and Thailand continue to weigh down sugar prices.

Source: YAHOO

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