SOFTS-Raw sugar edges higher, cocoa and coffee also up
- Dealers said the market may need to consolidate in the short term before there could be another test of resistance around the 13 cent level.
LONDON: Raw sugar futures on ICE rose on Monday, edging back up towards last week's five-month peak, while cocoa and coffee prices were also firm.
SUGAR
October raw sugar rose 0.06 cents, or 0.5pc, to 12.73 cents per lb by 1014 GMT.
The front month rose to a peak of 13.00 cents on Friday, its highest since March 6.
Dealers said the market may need to consolidate in the short term before there could be another test of resistance around the 13 cent level.
"Sugar has had a few bullish things happen to it recently - China importing a bit more for stock, Pakistan tendering to import and problems with a beet disease in Europe. At the same time, funds have been buying steadily, pushing the price up," analyst Robin Shaw of broker Marex Spectron said in a note.
Pakistan - which had been exporting sugar until earlier this year - is now seeking 300,000 tonnes due to a deficit in the 2019/20 season which ends of Sept. 30.
October white sugar rose by $2.50, or 0.7pc, to $374.80 a tonne.
COCOA
December New York cocoa rose $1, or 0.04pc, to $2,524 a tonne after climbing to a five-month high of $2,535.
Dealers noted speculators had switched from a net short to a net long in New York cocoa futures with the recent run-up creating a more bullish outlook on price charts.
December London cocoa gained 4 pounds, or 0.2pc, to 1,719 pounds a tonne.
COFFEE
November robusta coffee rose $16, or 1.2pc, to $1,379 a tonne with the market supported by concerns that the spread of COVID-19 in Vietnam could disrupt the flow of supplies from the world's top robusta producer.
Vietnam's health ministry on Sunday reported 31 new COVID-19 cases and an additional death, taking the country's total tally to 841, with 11 fatalities.
December arabica coffee was up 0.8 cents, or 0.7pc, to $1.1870 per lb??.
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