LONDON: Raw sugar futures on ICE edged higher on Wednesday as the dollar lost some ground after its recent strong advance, while arabica coffee and cocoa prices also rose.
Sugar
October raw sugar rose 0.4% to 18.45 cents per lb by 1054 GMT.
Dealers noted the dollar had fallen back slightly against a basket of currencies on Wednesday after jumping by 1.5% on Tuesday, its largest percentage gain since March 2020.
Stronger-than-expected sugar production in Centre-South Brazil during the second half of August, however, helped to keep a lid on the market.
October white sugar, which expires on Thursday, fell 0.7% to $602 a tonne, retreating further from the prior session’s 10-year high of $620.30.
Dealers said the whites market was underpinned by tight supplies with stocks depleted in some major importing countries, exports from India remaining low while refining costs have also risen in recent months.
Open interest on the October contract stood at 6,408 lots, as of September 13, equating to 320,400 tonnes.
Coffee
December arabica coffee rose 0.3% to $2.2145 per lb supported by the weaker dollar.
Dealers said the market remained on the defensive, however, due to an improved outlook for crops in Brazil with rains in the later part of September seen spurring the key flowering period.
November robusta coffee rose 0.1% to $2,241 a tonne.
Cocoa
December New York cocoa was up 0.1% at $2,353 a tonne.
Ivory Coast’s cocoa grind was up 9.2% year-on-year in August to 59,000 tonnes, data from exporters’ association GEPEX showed on Wednesday.
December London cocoa rose 0.1% to 1,840 pounds a tonne.
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