Dollar devaluation drives sugar prices up on the international markets.

Sugar futures contracts closed higher on Thursday (17) reflecting the devaluation of the dollar that reached the lowest level in more than two years in relation to the main currencies, which makes commodities priced in dollars cheaper for investors who hold other currencies, according to analysts polled by Reuters.

In ICE's March / 21 contracts in New York, the commodity appreciated 19 points compared to the previous day, closing at 14.68 cents per pound. The May 21 screen was contracted at 14.00 cts / lb, an appreciation of 15 points. The other contracts rose between 8 and 12 points.

In London, white sugar also closed valued on all screens. March / 21 lots were traded at $ 403.40 a ton, up $ 4.60 from Wednesday's prices. The May / 21 screen rose $ 3.70 to trade at $ 396.70 a ton. The remaining contracts rose between US $ 1.70 and US $ 3.20.

Operators interviewed by Reuters said they expected India's sugar exporters to try to guarantee sales quickly after the country's government approved a subsidy program for up to 6 million tonnes of the sweetener. "Any significant recovery in prices will depend on whether the funds can return to long positions, which have been significantly reduced over the past month."

Reuters also added that the UK announced the creation of a tariff-free quota for the import of 260,000 tonnes of raw sugar in 2021, "at a time when it is building an independent trade policy for the first time in almost 50 years," the agency said.