NEW YORK: Speculators reduced their net short position in raw sugar on ICE Futures US by almost half in the week to May 19, trimming 22,070 contracts for a total short of 23,694 contracts, US Commodity Futures Trading Commission (CFTC) said on Friday.
Raw sugar futures' prices have risen recently along with crude oil. Greater fuel demand could lead Brazilian sugar and ethanol plants to produce more of the cane-based biofuel and less of the sweetener.
Sugar demand still shows signs of strength as well, as indicated by the fact the spot contract on ICE has traded at prices that are higher than the second-month position, showing large interest for prompt deliveries.
Speculators slightly reduced their net long position in arabica coffee futures on ICE by 655 contracts to hold a net long position of 4,629 contracts by May 19, CFTC said.
The CFTC report also said speculators trimmed their net short position in cotton futures by 1,125 contracts to 7,264 contracts.
And they increased their net short position in cocoa by 753 contracts to 14,201 contracts by May 19.