LONDON: Raw sugar futures on ICE steadied on Thursday after hitting a three-week low in the prior session amid expectations of a large physical delivery against the July contract that expires on Friday.
SUGAR
July raw sugar edged up 0.01 cents, or 0.1pc, to 12.04 cents per lb at 1227 GMT.
"The general view is that a large delivery suggests ample supplies and sluggish demand. However, at least one trade house appears to disagree," said a dealer.
The July contract's discount to September narrowed to -0.29 cents having been as low as -0.32 cents on Wednesday.
In industry news, India, a top sugar producer, saw monsoon rains 24pc below average in the week ended June 26, the weather office said. The below-average rainfall this season threatens to curtail crop yields but Indian sugar stocks remain ample, weighing on the market.
Elsewhere, sugar production in Brazil's main producing region in the first half of June remained below levels seen at this time in the previous season, cane industry group Unica said.
"It appears (supply from) alternative origins more than outweighs any potential reduction in Brazilian availability," said a dealer.
August white sugar rose $2, or 0.6pc, to $321.30 per tonne.
COFFEE
September arabica coffee rose 0.3 cents, or 0.3pc, to $1.0600 per lb, after rising to a three-week peak of $1.0820 on Wednesday.
Prices have picked up some support in recent weeks from a weaker dollar and stronger real, which discourages Brazilian producer selling of dollar-priced coffee, but plentiful global supplies continue to weigh.
September robusta coffee rose $3, or 0.2pc, to $1,437 a tonne.
Coffee prices in Vietnam edged higher this week as supplies ran low, with farmers unwilling to sell below 35,000 dong per kg and almost no new deals made this week.
COCOA
September New York cocoa rose $3, or 0.2pc, to $2,465 per tonne.
Dealers are keeping a close watch on the weather in top producer Ivory Coast, where dryness is a concern.
September London cocoa fell 6 pounds, or 0.3pc, to 1,821 pounds a tonne.
Comments
Comments are closed for this article.