(Bloomberg) -- Raw sugar futures climbed in New York in a rebound move after a selloff ahead of a record exchange delivery to settle the March contract.
The most-active contract surged as much as 3.8%, the biggest intraday jump since Jan. 16. That’s after prices had slumped in the days that preceded the March expiration.
While some of Monday’s gains might have been driven by a short-term technical correction, traders are also trying to access risks of dry weather in top supplier Brazil, said Henrique Akamine, a sugar markets analyst at MJ Nugent & Co. There are fears that the upcoming sugar cane harvest could face delays after below-average rains seen in February and March.
Sugar cane mills in Brazil typically start operating at the end of March and beginning of April. While some bet that a delay could happen if producers feel like the cane needs more time to fully develop, Akamine points out that those decisions still depend on the outlook for rains in the coming weeks.
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