Raw sugar futures in New York came under severe pressure in the period under review with ample supplies searching for a home and talk that India could soon reintroduce raw sugar export incentives adding to the bearish mood. Also, the market's activityhas started to centre on spread trading ahead of the March contract's expiry on February 27. The benchmark contract for March delivery ended down 65 points at 14.51 cents/lb after touching a one-month low of 14.10 cents on February 2. Second-month May dropped 88 points to 14.58 cents/lb, which reduced the discount of the nearby contract to seven points, the smallest in 11 months.White sugar futures in London also ended significantly lower with the nearby March contract eventually ending down $10.10 at $381.80 a tonne. The contract even touched a six-year low of $369.80 a tonne last Monday. Second-month May dropped $18.60 to $383.60 a tonne. The March contract in London already expires on February 13.The nominal Mar/Mar white sugar premium rose for the last six sessions in a row to reach $61.91 a tonne, after it fell as low as $57.21 a tonne on January 29.The news of the week came out of Brazil where industry sources said the long-awaited blend increase of anhydrous fuel ethanol in retail gasoline to 27% from the current 25% will come in effect from February 15. Congress had already passed legislation inlate 2014 authorising the federal government to raise the maximum blend to 27.5%. Unica president Elizabeth Farina added that she expects the blend to go up to27.5% as allowed under current law after a test phase for this blend will be completed by April 8.
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