Sugar futures were up and was kept bullish by a weaker dollar and a supportive reports from Brazil’s cane crush industry.
Raw sugar futures for March Delivery added 1.2% to settled at 14.17 cents per pound. Sabine Lautenschlaeger, an ECB executive board member, stated that the central bank should start scaling back its aggressive bond-buying program in the next year.
The pulsing comments pushed the euro against the dollar, which was bearish against a basket of currencies. Traders are expecting an update on the future of the asset-purchase program when policy makers meet later in October.
The Brazilian cane industry association, Unica, crushed 40.3 million metric tons of cane in the second fortnight of September, which was lower than 5.2% from the same period a year earlier. In that period, they produced 2.9 million tons of sugar and produced 2 billion liters of ethanol.
The output was slightly below what was expected in the market for the period, and sugar millers also reduced the amount of cane allocated to sugar production to 46.54%
In other Agricultural markets, Cocoa futures for December delivery was up by 1.8% to settle at $2,045 per metric ton. Arabica Coffee futures was also up by 0.04% to close at $1.3100 per pound. December cotton unchanged at 68.95 cents per pound.
On the weather front, Green Pool reported that in early October the central-south Brazil received very welcomed rain, which could have a good impact on the next season.