Raw sugar slips but heads for 6pc gain on the week
- December white sugar rose $1.9, or 0.5%, to $366.30 a tonne, having hit its highest in nearly a month at $372.50.
- December arabica coffee edged up 0.4 cents, or 0.3%, to $1.1840 per lb, following four consecutive days of losses.
LONDON: Raw sugar futures on ICE slipped on Friday but remained set for weekly gains of nearly 6% amid signs of strong demand for refined sugar, while arabica coffee edged up but was headed for a weekly fall of 10%.
SUGAR
October raw sugar dipped 0.02 cent, or 0.2%, to 12.60 cents per lb at 1159 GMT, having hit a two-week high in the previous session.
December white sugar rose $1.9, or 0.5%, to $366.30 a tonne, having hit its highest in nearly a month at $372.50.
The discount for December white sugar versus March has been narrowing recently, indicating good demand for the refined sweetener.
A stronger Brazilian currency is also helping, deterring Brazilian mills from selling dollar-priced sugar by lowering their returns in local currency terms.
Dealers said producer selling has been limited at current price levels, while fund interest on the long side is strong, meaning prices will likely continue to improve near term.
Sugar group Tereos expects the average yield for its French sugar beet harvest to fall by about 12% this year from last after crop disease hit some growing regions.
COFFEE
December arabica coffee edged up 0.4 cents, or 0.3%, to $1.1840 per lb, following four consecutive days of losses.
Arabica has lost some 10% of its value this week amid forecasts for rains in top producer Brazil.
Analysts are increasing their surplus forecasts for the 2020/21 crop following record output from Brazil, and differentials or premiums for coffees from key central and south American countries are starting to weaken.
November robusta coffee rose $14, or 1%, to $1,401 a tonne.
Tropical storm Noul made landfall in Vietnam, the world's top robusta producer, on Friday, triggering heavy rain in the central parts of the country, though authorities later downgraded the weather system.
COCOA
December London cocoa rose 8 pounds, or 0.4%, to 1,815 pounds per tonne, having hit its highest since mid May on Tuesday amid political tensions in the Ivory Coast.
December New York cocoa rose $19, or 0.7%, to $2,604 a tonne.
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