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LONDON: Raw sugar futures on ICE rose to a two-week high on Wednesday, boosted by technically-driven buying and forecasts for more rain in top grower Brazil which look set to delay the harvest.

Cocoa prices were lower as the flow of cocoa resumed after the disruption caused by a mutiny in parts of the army.

SUGAR

July raw sugar rose 0.31 cents, or 1.95 percent, to 16.19 cents per lb by 1217 GMT after setting a two-week high for the front month of 16.21 cents.

Traders said buying was driven largely by a more bullish technical outlook with the July contract closing above its 20-day moving average on Tuesday for the first time since February.

They noted there was a band of resistance around 16.20 to 16.25 cents, an area which had provided support last month.

"If we can get through that then I think it could lead to a short-covering rally which could take the market up towards 17 cents," one dealer said.

The market also derived support from forecasts of further heavy rains in parts of Brazil on Friday, Saturday and Sunday.

"That amount of rain will halt harvesting operations for sure," one trader said.

August white sugar was up $7.30, or 1.6 percent, at $455.30 a tonne.

COCOA

July London cocoa was down 12 pounds, or 0.8 percent, at 1,566 pounds a tonne as the flow of cocoa in top grower Ivory Coast returned to normal after recent unrest.

Cocoa exporters resumed bean purchases in Ivory Coast's second port of San Pedro after it reopened on Wednesday following a two-day closure caused by the mutiny, an exporter and a regulator official said.

July New York cocoa fell $9, or 0.4 percent, to $2,026 a tonne.

COFFEE

July arabica coffee was down 0.10 cent, or 0.1 percent, at $1.3135 per lb.

Dealers said the market's recent decline had created a more bearish outlook on price charts although technical support was seen around $1.30.

July robusta coffee was up $10, or 0.5 percent, at $1,969 a tonne.

 

Copyright Reuters, 2017
 

 

 

 

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