LONDON: Raw sugar futures on ICE steadied on Tuesday as some risk appetite returned to the wider financial markets, with global equities moving higher thanks to a US stimulus deal that offset angst over the new, highly infectious coronavirus variant. March raw sugar edged up 0.1% to 14.54 cents per lb at 1504 GMT.
Dealers said trade was extremely quiet ahead of Christmas and New Year holidays, and that sugar would range between 14.20 and 15 cents in the near term, with no new fundamental factors to drive it. They added, however, that analysts are likely to be revising down their expectations for sugar consumption next year given the ongoing chaos caused by the coronavirus pandemic.
Indonesia, the world's top sugar importer, has approved 3.31 million tonnes of raw sugar imports for next year, the economy ministry told Reuters. India will be unable to count on Iran, one of its most important sugar customers, for its upcoming export drive as an increase in Iranian production and Tehran's shortage of rupees limit buying.
March white sugar edged up 0.1% to $400.70 a tonne. March London cocoa fell 0.8% to 1,657 pounds per tonne, having hit its lowest since mid-November. Well-above average rains mixed with sunny spells across most of Ivory Coast's cocoa regions should improve the quality and the size of beans in February and March, farmers said.
Sterling fell amid uncertainty over Brexit trade talks and as the new coronavirus variant spread across Britain. A weaker pound makes sterling-priced London cocoa cheaper for non-British investors. March New York cocoa fell 0.6% to $2,480 a tonne. March arabica coffee rose 0.6% to $1.27 per lb, having hit a one week low on Monday. Arabica closed 3.6% higher last week despite upward revisions to the Brazilian 2020 crop. March robusta coffee slipped 0.1% to $1,381 a tonne.
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