Meanwhile, India is cutting global supply as the government cabinet deferred a decision on subsidies to help mills export raw sugar.
“Brazil’s dryness initiated this move up, and India’s deferral of possible exports added a little fuel to the fire,” Boyd Cruel, a senior market analyst at Vision Financial Markets, said in the Bloomberg article. “Funds are unwinding some of their large net-short position.”
iPath Dow Jones-AIG Sugar Total Return Sub-Index ETN
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Max Chen contributed to this article.