LONDON: Raw sugar and arabica coffee futures on ICE rose on Friday as the markets consolidated after plumbing more than one-month lows in the prior session.
SUGAR: July raw sugar was up 0.8% to 25.02 cents per lb at 1323 GMT, having hit its lowest since late April on Thursday at 24.61 cents.
India is likely to receive a normal amount of monsoon rain in 2023 despite the likely emergence of the El Nino weather phenomenon, the state-run weather office said.
Normal summer rains might allow the world’s No. 2 sugar producer to lift curbs imposed on exports of the sweetener.
Meanwhile, industry data shows sugar output in top producer Brazil’s center-south soared 50% in the first half of May versus a year ago.
August white sugar rose 0.3% to $700 a tonne.
COFFEE: July arabica coffee rose 0.4% to $1.8140 per lb, having matched Thursday’s 1.5 month low of $1.7955 earlier.
A Brazil-based dealer said prices in the physical spot market were “under total pressure, with more sellers than buyers”.
Top producer Brazil’s 2023/24 arabica coffee crop will total 800,000 bags more than initially expected at 34.87 million bags, broker Pine Agronegocios said.
However the broker, which released a report after its second crop tour to Brazil’s coffee areas, kept its forecast for robusta coffee production stable at 20.29 million bags. July robusta coffee rose 1.2% to $2,537 a tonne, having hit a 15-year peak of $2,675 on Tuesday.
Farmers in top robusta producer Vietnam expect a 10%-15% drop in output in 2022/23, while exporters fear they do not have enough beans to deliver in the second half of this year.
COCOA: July London cocoa edged up 0.1% to 2,368 pounds per tonne.
The looming El Niño weather phenomenon is expected to bring below average rains to West Africa, hitting cocoa supply, according to research firm BMI, a unit of Fitch Solutions.
July New York cocoa rose 0.2% to $3,023 a tonne.
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