Raw sugar hits 2-1/2 month peak; coffee also climbs
- Brazil's real surged Wednesday, potentially slowing sales from the world's top exporter of both sugar and coffee.
- July raw sugar settled up 0.4 cents, or 3.6%, at 11.62 cents per lb, the highest closing price for the front month since March 13.
- July
NEW YORK/LONDON: Raw sugar futures on ICE climbed to their highest in more than two months on Wednesday, buoyed by a global rally in equities and the strength of Brazil's real currency, while arabica coffee also advanced.
Brazil's real surged Wednesday, potentially slowing sales from the world's top exporter of both sugar and coffee, with dollar-denominated global prices now less attractive in local currency terms.
SUGAR
July raw sugar settled up 0.4 cents, or 3.6%, at 11.62 cents per lb, the highest closing price for the front month since March 13.
Dealers said a more constructive macroeconomic backdrop had helped trigger fund buying.
The emerging market currency recovery is linked to a recovery in the world's economies. If that trend continues then consumption, which had been scaled back sharply, should improve", said a New York-based broker.
An increase in production in Centre-South Brazil this season and the prospect of a rebound in India helped to limit the rally in sugar prices.
INTL FCStone projects the global sugar supply balance to shift from deficit to surplus.
August white sugar settled up $5.60, or 1.5%, at $375.60 a tonne.
COFFEE
July arabica coffee settled up 0.9 cents, or 0.9%, at 99.1 cents per lb.
Dealers noted gains were capped by steady progress in the Brazil coffee harvest with a bumper crop expected this year.
July robusta coffee settled up $23, or 2.0%, at $1,202 a tonne.
COCOA
July New York cocoa settled down $7, or 0.3%, at$2,395 a tonne.
Dealers said concerns about declining demand combined with an improving crop outlook in top grower Ivory Coast after recent rains had weighed on prices this week.
July London cocoa settled up 15 pounds, or 0.8%, at 1,913 pounds per tonne.
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