Sugar surges on fresh demand news; cocoa also climbs
- October raw sugar settled up 0.63 cents, or 5.5%, at 12.12 cents per lb after peaking at 12.14 cents, the highest level since July 9.
- China's sugar imports in June were sharply above the same month last year.
NEW YORK/LONDON: Raw sugar futures on ICE surged to the highest level in more than two weeks on Monday as crop concerns in Thailand and demand from China and elsewhere helped tighten supplies, while New York cocoa prices also rose sharply.
SUGAR
October raw sugar settled up 0.63 cents, or 5.5%, at 12.12 cents per lb after peaking at 12.14 cents, the highest level since July 9.
Dealers said supportive factors included demand from China, drought in Thailand and a stronger Brazilian real, which may curtail sales from the world's top exporter.
China's sugar imports in June were sharply above the same month last year.
Pakistan could import around 300,000 tonnes of sugar to tackle a shortage that has lifted local sugar prices, industry officials told Reuters.
One dealer also said there were talks of Indonesia opening up new import licenses for raw sugar.
October white sugar settled up $14.90, or 4.3%, at $365.20 a tonne.
COCOA
September London cocoa settled up 13 pounds, or 0.8%, to 1,559 pounds per tonne.
Dealers said funds were scaling back short positions with the market beginning to build a base after sliding to the lowest level in nearly two years earlier this month.
Cocoa arrivals at ports in top grower Ivory Coast reached 2.025 million tonnes between Oct. 1 and July 26, down 5.8% from the same period last season.
September New York cocoa settled up $62, or 2.8%, to $2,286 a tonne.
COFFEE
September arabica coffee settled up 2 cents, or 1.8%, at $1.104 per lb, also buoyed by the strength of the currency of top producer Brazil.
Brazil-based broker Escritorio Carvalhaes said farmers in the largest producer will hold on to sales since they are now making less in local currency and had already sold well.
One dealer said funds covered part of short positions due to fears related to coronavirus cases in Latin America, particularly in Central America where harvest time is approaching.
September robusta coffee settled down $12, or 0.9%, at $1,346 a tonne.
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