LONDON: Raw sugar futures on the ICE exchange rose on Monday as dealers bet this year’s commodity index rebalancing would lend support, while cocoa also gained ahead of the inclusion of the New York contract in a key commodities index.
SUGAR
Raw sugar rose 1.1percent to 14.77 cents per lb at 1151 GMT, having fallen 2.7 percent on Friday. Dealers said that given raw sugar’s sharp losses last year, commodity index funds should buy a substantial amount of the sweetener during the annual rebalancing starting January 8.
Overall though, they said the market remains under pressure from prospects for a global surplus in the 2025/26 season, adding technical signals suggest it is in danger of breaking support at around 14.50 cents/lb and heading lower.
White sugar rose 1.3 percent to USA423.80 a metric ton, having 2.1 percent on Friday. Ukrainian refineries have almost completed white sugar production from the 2025 beet harvest, refining 1.574 million tons as of January 1, from 1.8 million in the prior season.
COCOA
New York cocoa rose 0.3percent to USA5,888 a ton, having lost 3.2percent on Friday. The market remains focused on New York cocoa’s addition to the Bloomberg Commodity Index, which is expected to lead to about 30,000 to 40,000 lots of buying, starting Jan. 8.
Capping gains in cocoa however, the weather has been benign of late in top grower West Africa and dealers said there is talk of a mild Harmattan.
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