Sugar gains on fear of lower export from India
White sugar rose on speculation that a strengthening rupee will make exports less attractive for producers in India, the world's second-biggest grower of the sweetener.
By Agencies |
LONDON: White sugar rose on speculation that a strengthening rupee will make exports less attractive for producers in India, the world's second-biggest grower of the sweetener.
The rupee is the world's third-best performing currency this year. Sugar is traded in dollars and a stronger rupee reduces the amount Indian sellers get in local currency terms.
"The strong currencies of exporting countries, such as India as well as Brazil, could be a factor that provides short-term support," said an analyst with Barclays Capital in London. Stronger currencies are "a bit of a disincentive for exporters."
Refined, or white, sugar futures for August delivery rose $3.20, or 1 per cent, to $338.20 a metric tonne on the Euronext.liffe exchange in London.
Sugar has declined 1.3 per cent this year. More than 1,640 August contracts were traded, compared with a daily average of 4,119 in the last 100 days for contracts closest to delivery. (
The rupee is the world's third-best performing currency this year. Sugar is traded in dollars and a stronger rupee reduces the amount Indian sellers get in local currency terms.
"The strong currencies of exporting countries, such as India as well as Brazil, could be a factor that provides short-term support," said an analyst with Barclays Capital in London. Stronger currencies are "a bit of a disincentive for exporters."
Refined, or white, sugar futures for August delivery rose $3.20, or 1 per cent, to $338.20 a metric tonne on the Euronext.liffe exchange in London.
Sugar has declined 1.3 per cent this year. More than 1,640 August contracts were traded, compared with a daily average of 4,119 in the last 100 days for contracts closest to delivery. (
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