Raw sugar rises as October expiry sees record delivery; coffee up
- March raw sugar settled up 0.09 cent, or 0.7%, at 13.51 cents per lb. The October contract expired quoted at 13.07 cents per pound.
- November robusta coffee settled up $1, or 0.1%, at $1,305 a tonne.
NEW YORK/LONDON: Raw sugar futures closed up on ICE on Wednesday as the front-month October contract expired and traders noted the largest delivery ever for the exchange at 2.62 million tonnes.
Arabica coffee prices closed modestly up, as the market gives signs of stabilizing after the sharp recent fall.
SUGAR
March raw sugar settled up 0.09 cent, or 0.7%, at 13.51 cents per lb. The October contract expired quoted at 13.07 cents per pound.
Deliveries against the expiration of the October contract were seen at 51,599 lots, a record for any contract in the exchange, according to traders.
Dealers diverged on the assessment of the delivery as to whether it was bearish or bullish for the market. As always, the large volume signals ample supplies, but the interest from traders to take delivery also indicates they have destination for the product.
"In our view, deliveries have been active this year because of the drop in Thai output, meaning trading houses used to buying Thai sugar now need to look for supplies elsewhere," Rabobank said in a note, adding that they prefer to do this via the exchange.
December white sugar settled up $3.40, or 0.9%, at $375.30 a tonne.
COFFEE
December arabica coffee settled up 1.4 cents, or 1.3%, at $1.1095 per lb, rebounding after a more than two-month low of $1.0830 set on Tuesday.
"Prices appear to have stabilised as the market weighs the prospect of bloated warehouse stocks in Brazil entering the market against a mixed start to flowering for the upcoming season," Rabobank said.
The bank added that temperatures in Brazil were trending above average and soil moisture loss may become an issue if rains do not arrive in the next couple of weeks.
There is forecast for rains on the second week of October over Brazil coffee areas.
November robusta coffee settled up $1, or 0.1%, at $1,305 a tonne.
COCOA
December London cocoa settled down 37 pounds, or 2.0%, to 1,796 pounds per tonne.
December New York cocoa settled down $42, or 1.6%, to $2,546 a tonne.
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