Consultant Jonathan Kingsman warned on Wednesday of risks sugar prices could fall after rallying to a three-week high this week, saying funds that piled into the sweetener may have over-reacted to talk of lower-than-expected Brazilian output.
On Wednesday they were up 0.11 cent or 0.4 percent at 25.72 cents a lb. "For the moment the reaction (latest rally) is probably a little bit too big," Kingsman said in an interview on the sidelines of the one-day Kingsman European Sugar Seminar, attended by over 100 European sugar trade and industry leaders. "It seems that yesterday's activity could have been a short-term top," he said.