Raw sugar gains, heads for sixth week of gains

LONDON: Raw sugar futures on ICE rose on Friday but were heading for six consecutive weeks of gains, helped by India's delay in announcing its sugar export subsidy policy.

Arabica coffee headed back into negative territory while cocoa prices rallied.

SUGAR

March raw sugar edged up by 0.05 cents, or 0.3%, to 14.83 cents per lb at 1328 GMT after touching an eight-month high of 14.94 cents on Thursday.

Indian sugar export subsidies will not be renewed before state elections are completed next month, sources said.

Dealers said the India policy delay will keep the market nervous and unpredictable but with an upside bias that is likely to take it above 15 cents, at least briefly.

"Chatter from Indian traders is that the recent improvement in world prices may see the government lessen the size of the subsidy," one dealer said.

China, a top sugar consumer, imported 540,000 tonnes of sugar in September, data showed, 29.1% more than a year ago.

December white sugar fell $0.80, or 0.2%, to $398.20 a tonne.

COFFEE

December arabica coffee fell 1.9 cents, or 1.7%, to $1.0480 per lb, having touched a three-month low of $1.0320 on Wednesday.

Worries over dry weather in Brazil's main coffee belt have receded of late, though forecaster Maxar said drier conditions could be seen in southern coffee areas in the next five days.

Dealers are also keeping an eye on exchange coffee stocks, which have begun rising off their recent 20 year lows.

January robusta coffee fell $9, or 0.7%, to $1,298 a tonne.

COCOA

March New York cocoa rose $18, or 0.7%, to $2,492 a tonne, having earlier touched a three-week high of $2,510.

At least 10 people have been killed in a port town in top cocoa grower Ivory Coast this week amid rising violence ahead of the Oct. 31 presidential election.

March London cocoa rose 11 pounds, or 0.7%, to 1,705 pounds a tonne.