LONDON: Raw sugar futures on ICE recovered on Monday as the market consolidated, having earlier hit a one-month low on easing supply concerns. Cocoa and coffee were mixed. March raw sugar rose 0.3% to 14.48 cents per lb at 1557 GMT, having hit a low of 14.30.
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.
March white sugar rose 0.1% to $397.50 a tonne. March New York cocoa fell 1% to $2,627 a tonne, having hit a two week low earlier. March London cocoa rose 0.6% to 1,785 pounds per tonne, having also hit a two week low.
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.
March arabica coffee rose 0.5% to $1.1810 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. March robusta coffee fell 1% to $1,341 a tonne, after hitting a one month low earlier.
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