White sugar climbs to 2-1/2 year high on tight supplies

• March white sugar rose $7.00, or 1.7pc, to $412.40 per tonne by 1158 GMT after climbing to a 2-1/2 year high of $413.40 earlier in the session.
• The current slow pace of Indian exports has also helped to boost white sugar prices.
• Brazilian farmers are on the way to produce a record coffee crop in 2020, surpassing the previous record reported in 2018.

LONDON: White sugar futures on ICE climbed to a 2-1/2 year high on Wednesday, boosted by nearby supply tightness, while arabica coffee was holding just above the prior session's two-month low.

SUGAR

March white sugar rose $7.00, or 1.7pc, to $412.40 per tonne by 1158 GMT after climbing to a 2-1/2 year high of $413.40 earlier in the session.

Dealers said the market was supported by tightness in sugar which can be tendered against the March contract which expires on Feb. 14.

The current slow pace of Indian exports has also helped to boost white sugar prices.

March raw sugar ??was up 0.21 cents, or 1.4pc, at 14.75 cents per lb, climbing up towards last week's two-year high of 14.90 cents.

Concerns about the impact of the coronavirus on the global economy sparked a recent setback in sugar prices although the market is now showing signs of resuming its advance.

"Protected by its bullish fundamentals, the (recent) drop in prices has been moderate," analysts Agritel said in note.

COFFEE

March arabica coffee was up 0.10 cents, or 0.1pc, at $1.0515? per lb, hovering just above Tuesday's two-month low of $1.0490.

Prices have fallen sharply so far this month weighed partly by rising certified exchange stocks.

The prospect of a record crop in top producer Brazil this year has also put the market on the defensive.

Brazilian farmers are on the way to produce a record coffee crop in 2020, surpassing the previous record reported in 2018, coffee exporter Comexim said in a projection released to clients late on Monday.

March robusta fell $4, or 0.3pc, to $1,323 per tonne.

Vietnam's coffee exports in January likely slumped 30.6pc from a year earlier to 140,000 tonnes, government data released on Wednesday showed.

COCOA

March New York cocoa fell $18, or 0.7pc to $2,685 per tonne, weighed by bearish technical indicators.

"New York March cocoa may slide more into a range of $2,617-$2,663 per tonne, as it has broken a support at $2,709," Reuters technical analyst Wang Tao said.

March London cocoa was down 4 pounds, or 0.2pc, at 1,935 pounds a tonne.