Raw sugar ends unchanged after hitting a month low; coffee gains
- March robusta coffee settled down $5, or 0.4%, at $1,350 a tonne.
- March New York cocoa fell $18 to $2,636 a tonne, having hit a two-week low earlier.
- March raw sugar rose closed only 0.01 cent to 14.45 cents per lb.
NEW YORK/LONDON: Raw sugar futures on ICE closed little changed on Monday, paring losses after falling to their lowest level in a month as funds dismantled their large long positions amid easing concerns over short-term supplies.
Arabica coffee prices ended higher despite rains in Brazil that could improve prospects for the crop next year.
SUGAR
March raw sugar rose closed only 0.01 cent to 14.45 cents per lb, having hit a one-month low of 14.30 earlier.
Speculators cut their net long position in ICE raw sugar in the week to Dec. 1 by 16,551 contracts to 176,330 contracts, data showed.
One dealer noted improved weather in Brazil, a better harvest in Thailand and the increased likelihood of Indian exports, either with the help of a government subsidy early next year or driven by a local price collapse that would make overseas sales more attractive.
He also noted a slowdown in imports from top consumers China and Indonesia, and said he expects a near term correction to a range of between 13.50-15.50 cents from 14-16 cents previously.
March white sugar rose 40 cents to $397.70 a tonne.
COCOA
March New York cocoa fell $18 to $2,636 a tonne, having hit a two-week low earlier.
March London cocoa rose $4 to 1,779 pounds per tonne, having also hit a two week low during the session.
Fundamentals remain bearish with the prospect of a substantial surplus in the current 2020/2021 season, and with the pick-up in producer selling during the last few days also weighing.
Ivory Coast will lift a suspension imposed this week on cocoa sustainability schemes run by Hershey after the chocolate maker committed to paying a premium aimed at combating poverty among farmers.
COFFEE
March arabica coffee settled up 1.55 cents, or 1.3%, at $1.191 per lb.
Rains in the coffee growing regions of top producer Brazil have improved the outlook for next year's crop. Weather forecaster Maxar said conditions look set to remain wet for the next six to ten days.
Some Brazilian farmers, however, say rains have come too late to avoid losses.
March robusta coffee settled down $5, or 0.4%, at $1,350 a tonne.
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