Sugar, coffee and cocoa rise as dollar weakens post Biden win

LONDON: Sugar, coffee and cocoa futures all rose on Monday as the dollar remained weak in the wake of Joe Biden's election as US president, and as promising news from Pfizer's COVID-19 vaccine candidate lifted risk appetite.

A weak dollar makes dollar-priced commodities cheaper for non-US investors.

SUGAR

March raw sugar rose 0.09 cent, or 0.6%, to 15 cents per lb, heading closer to the eight-month high of 15.23 cents hit last week.

Dealers said rumours that this season's sugar export subsidies from India, a top producer, would be less than half of last season's were also buoying sugar.

Elsewhere, concerns persist the sugar market will remain tight at least until top producer Brazil starts to harvest its new crop next year.

Speculators cut their net long position in ICE raw sugar by 19,952 contracts to 191,382 contracts in the week to Nov. 3 .

December white sugar, which expires next Friday, was up $0.7, or 0.2%, at $401 a tonne.

COFFEE

December arabica coffee rose 1.3 cent, or 1.2%, to $1.0840 per lb.

Arabica has gained some support from concerns recent dry weather could contribute to a significant production decline in top grower Brazil next year.

One dealer said the dollar weakness expected following Biden's win, plus a recovery in demand as coronavirus cases recede, should life coffee prices longer term.

January robusta coffee rose $14, or 1%, to $1,364 a tonne.

COCOA

March New York cocoa rose $77, or 3.3%, to $2,416 a tonne, having hit its highest in 1-1/2 weeks earlier.

Cocoa arrivals at ports in top grower Ivory Coast reached 485,000 tonnes between Oct. 1 and Nov. 8, up 8% from the same period last season.

Cocoa prices have been bolstered by some disruptions to the flow of supplies in Ivory Coast after a disputed presidential election, with opposition leader Pascal Affi N'Guessan under arrest for creating a rival government.

March London cocoarose 32 pounds, or 2%, to 1,642 pounds per tonne.