NEW YORK: Sugar futures on ICE rallied on Friday as investors’ fears over potential surplus supplies flooding the export market faded somewhat, while arabica coffee steadied after hitting a record high in the prior session.
Raw sugar settled up 0.33 cent, or 1.8%, at 19.02 cents per lb, having hit a five-month low on Tuesday. White sugar rose 2.3% to $498.20 a metric ton.
Easing fears over surplus supplies, traders in India are struggling to sign export contracts after New Delhi allowed 1 million tons of shipments as mills are seeking hefty premiums over London prices, sources told Reuters. Before export approval, Indian prices were at a big discount to global prices, making exports profitable. However, post-approval, Indian prices surged while global prices declined. Elsewhere, Thai businesses are expected to incur up to 1 billion baht ($29.5 million) in losses from China’s ban on sugar syrup and premixed powder exports from the Southeast Asian nation, with shipments left stranded in Chinese ports.
Arabica coffee settled up 3.6 cents, or 1%, at $3.4755 per lb, having hit a record high of $3.4890 per lb on Thursday. Dealers cited persistent nervousness in the physical sector following the record high and added global inventories remain tight, while supply chain issues have not eased.
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