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Sugar Futures Prices Bearish Bets

Sugar Futures prices Rose August 27 2015 : Sugar prices rallied Thursday as funds rushed to cover their bearish bets in the wake of stronger-than-expected U.S. economic growth numbers. On the ICE Futures U.S. exchange, raw sugar futures for October delivery gained 4% to 10.95 cents a pound. Sugar prices have recovered 5.4% since Aug. 24 when they tumbled to the lowest level in seven years.

Soft commodities were hammered in recent days amid a sharp selloff sweeping global financial markets, as traders were assessing the prospect of a slower Chinese economy and the ensuing disinflationary impact on the global growth.

Some participants in the commodity markets, especially those long-only funds, have liquidated their positions fearing slower demand for commodities could hurt prices even further.

At the same time, speculators swooned in to place bearish bets amid growing concerns about Chinese growth.

Demand for sugar has been slowing in developed markets, but rising in emerging markets. But some have questioned whether China's appetite for sugar will remain strong in light of the recent devaluation of its currency amid slowing economic growth and rocky financial markets.

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