By Julie Wernau
Sugar futures bounced to end higher Wednesday as bullish news helped extend the contract's rally into a second straight session.
Raw sugar for March was up 2.4% to end at 18.99 cents a pound on the ICE Futures U.S. exchange.
Agrilion Commodity Advisers said recent reports from both the key Maharashtra state in India and from Thailand that cane crops could disappoint helped provide fundamental news to push bulls back into long positions.
The market has been waiting for a bottom to form in a market that has been in a steep selloff since October. Tuesday, the market had its first bounce back, triggered by six successive trading days in which the most active contract stuck to tight range 18.15 to 18.25 cents a pound without crashing.
In other markets, cotton for March delivery closed flat at 69.75 cents a pound.
With the U.S. cotton harvest completed, year-end is typically a quiet time in the cotton market with the results of the U.S. Department of Agriculture's survey of planting projections for the next season not yet released and weekly progress updates about the state of the U.S. crop finished for the season.
"The U.S. harvest should be over and offers should start to decrease in domestic cash markets," said Jack Scoville, vice president of Price Futures Group in Chicago.
The Rose Report on cotton cautioned that the cotton contract is still heavily skewed toward bullish speculators and "warrants extreme caution when entering this market on the long side."
Cocoa for March was down 1.4% to close at $2,205 a ton, arabica coffee for March lost 0.5% to close at $1.335 a pound and March frozen concentrated orange juice futures slumped 1% to settle at $1.8745 a pound.
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(END) Dow Jones Newswires
December 28, 2016 16:42 ET (21:42 GMT)
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