Raw sugar futures rise as nearby premium climbs
- March New York cocoa was down $22, or 0.9%, at $2,509 a tonne.
- March arabica coffee rose 2.3 cents, or 1.9%, to $1.2530 per lb.
- March raw sugar rose 0.37 cents, or 2.3%, to 16.20 cents per lb .
LONDON: Raw sugar futures on ICE were higher on Monday, boosted by nearby supply tightness in the physical market, while arabica coffee prices also advanced.
SUGAR
March raw sugar rose 0.37 cents, or 2.3%, to 16.20 cents per lb by 1534 GMT.
Dealers said March's premium to May was widening ahead of its expiry this month as stronger than expected demand tightens the physical market.
They noted the outlook for prices could hinge on whether the extra demand is front-loading or rather reflects higher than previously believed global consumption.
"It certainly was (front-loading) in the case of China ... In other countries we have seen no hard evidence of front-loading," said Marex Spectron analyst Robin Shaw.
March white sugar rose $10.70, or 2.35%, to $466.80 a tonne.
Raw sugar futures look set to end this year more than 8% below current levels, with a marginal global surplus this season seen widening slightly in 2021/22, a Reuters poll of 11 traders and analysts showed on Monday.
COFFEE
March arabica coffee rose 2.3 cents, or 1.9%, to $1.2530 per lb.
Dealers said the market derived some support from concern over dry weather in parts of Brazil's coffee belt.
March robusta coffee was up $12, or 0.9%, at $1,318 a tonne.
COCOA
March New York cocoa was down $22, or 0.9%, at $2,509 a tonne.
Dealers said there remain concerns that there is still a lot of cocoa available from top grower Ivory Coast, with talk that there has been active trade in the physical market in recent days at comparatively low levels.
March London cocoa fell 13 pounds, or 0.75%, to 1,715 pounds a tonne.
Comments
Comments are closed for this article.