Sugar Rises in London as Prices at 13-Month Low May Spur Demand

“Jan. 15 (Bloomberg) -- Refined sugar in London rose on speculation last week's drop to a 13-month low will spur demand.

“The 14-day relative strength index for sugar in London declined to 30.5 on Jan. 12, a signal that prices are poised to climb. Indonesia purchased 158,000 metric tons of refined sugar for delivery this month, C. Czarnikow Sugar Ltd. said in a monthly report today.

“‘There is business going on, bread-and-butter small business,’ said David Sadler, head of sugar trading at Sucden (U.K.) Ltd. in London.

“White, or refined, sugar for March delivery advanced $1, or 0.3%, to $326 a metric ton on Euronext.liffe. Prices ended last week at $325, the lowest since December 2005.

“Tunisia bought 14,000 tons of refined sugar for April delivery and is seeking another 14,000 tons for May, Czarnikow said. Ethiopia recently bought 20,000 tons from London-based Tate & Lyle Plc, Sadler said. Tate & Lyle spokeswoman Ferne Hudson declined to comment.”
Continued

Sugar started in the 5 cent range and is now in the teens digesting the gains.
Next level will be 20 cent range within a year.