White sugar futures rally on back of technical buying wave

<p>White sugar futures have made gains as a bout of technical buying boosts values.</p>

White sugar futures have made gains in European commodities trading this afternoon (January 28th), on the back of a wave of technical buying amid speculation prices may have bottomed out.

The value of the sweet foodstuff strengthened as investors closed out bets that prices would fall again after futures moved into "oversold" territory.

Sugar futures have been under a lot of selling pressure lately, as sentiments on the ingredient were dampened on speculation international stockpiles are more than enough to meet global demand.

Indeed, Goldman Sachs slashed its 2013 price projections for the sweetener earlier in January, citing ample supply.

At 15:30 GMT on the Euronext LIFFE Futures index, White Sugar Futures rose by 1.6 per cent to $493.90 per metric tonne, while Cocoa Futures rallied by 0.2 per cent to £1419.00 per tonne and Robusta Coffee Futures advanced by 0.4 per cent to $1995.00 per tonne.

Find the latest spread betting strategies for the commodities market at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.