Raw sugar futures edge up, cocoa prices weaken
- March arabica coffee fell 0.4 cents, or 0.3%, to $1.2575 per lb.
- March New York cocoa was down $36, or 1.4%, at $2,516 a tonne.
- March raw sugar was up 0.03 cents, or 0.2%, at 15.79 cents per lb
LONDON: Raw sugar futures on ICE were slightly higher on Tuesday, edging up towards the previous session's 3-1/2 year peak, with the market boosted by short-term supply tightness.
SUGAR
March raw sugar was up 0.03 cents, or 0.2%, at 15.79 cents per lb by 1223 GMT after climbing to a peak of 16.13 cents on Monday, its highest since May 2017.
"There are signs of a tight supply situation on the market. The processing season in Brazil drew to a close at the end of 2020. The new season will not begin until April, meaning that no new supply will reach the market from there for the time being. Sugar production in Thailand, the world's second-largest exporter, proved disappointing," Commerzbank said in a note.
Dealers said a pick-up in exports from India could provide some relief, though the premium for March over May has been climbing and now stands at about 0.82 cents, up from about 0.6 cents a month ago.
"Indian sugar is likely to make its way onto the world market, given the domestic surplus and thanks to the export subsidy announced by the government late last year," ING said in a daily market update.
March white sugar was up $1.80, or 0.4%, at $432.10 a tonne.
COCOA
March New York cocoa was down $36, or 1.4%, at $2,516 a tonne.
Dealers noted concerns that lockdowns across Europe could further weaken demand, with some farmers in Ivory Coast forced to sell beans for less than the guaranteed farmgate prices because of a lack of buyers.
March London cocoa fell 35 pounds, or 2%, to 1,687 pounds a tonne.
COFFEE
March arabica coffee fell 0.4 cents, or 0.3%, to $1.2575 per lb.
March robusta coffee futures were unchanged at $1,372 a tonne.
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