BREAKING NEWS:
Home »Markets » Commodities » Europe » Raw sugar recovers ground on Brazil rains, cocoa slips

LONDON: Raw sugar futures gained on Friday as forecasts for adverse weather in top grower Brazil temporarily offset worries about further pressure from the real currency, while cocoa slipped as a bout of short-covering fizzled out.

SUGAR

July raw sugar rose 0.15 cents, or 0.94 percent, to 16.18 cents per lb by 1115 GMT, recovering some ground.

Prices fell sharply on Thursday, as the Brazilian real slumped 8 percent against the US dollar in its biggest percentage drop since 1999.

Raw sugar fell as much as 4.4 percent before recovering ground to close 1.7 percent lower.

The further rebound on Friday was largely driven by more supportive technicals and forecasts for heavy rains in top grower Brazil, which could temporarily disrupt production.

"Brazil's southern cane region is now seeing a very big turn for the worse in the weather," Commonwealth Bank of Australia's Tobin Gorey said.

However, dealers noted there is still risk for further pressure from the real currency, as Brazil grapples with allegations that President Michel Temer condoned bribes.

August white sugar rose $4.80, or 1.05 percent, to$460.10 a tonne.

COCOA

July London cocoa fell 19 pounds or 1.18 percent to 1,586 pounds a tonne, giving up much of the previous session's gains.

New York cocoa slipped $25, or 1.20 percent, to $2,059 a tonne, after the contract climbed to a six-week high on Thursday.

Dealers said the gains were driven by speculators covering their short positions, but lack of follow-through and weaker technicals had sapped the momentum.

"The market hasn't really been able to follow through on the steady progression we saw yesterday," said one dealer. "And without that, the market is just paring back some of the recent gains it's made and giving back some ground."

Participants continued to monitor cocoa arrivals and the progression of the mid-crop in the Ivory Coast, with both signalling ample supplies ahead.

COFFEE

July arabica coffee rose 0.65 cents, or 0.49 percent, to $1.327 per lb.

The contract also fell as low of $1.293 in the previous session due to the Brazilian real.

Dealers said the market's close below $1.30 had created a small buying opportunity, but further downside was likely due to weaker technicals and potential currency risk.

July robusta coffee fell $8, or 0.40 percent, to $1,976 a tonne.

 

Copyright Reuters, 2017
 

the author

Leave a Reply

Your email address will not be published. Required fields are marked *

Close
Close
Top