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Markets

Raw sugar futures climb, focus on May expiry

Published Updated

sugarLONDON: Raw sugar futures on ICE were higher on Friday, but remained on course for a weekly loss as the market kept a close watch on the May contract due to expire later in the day.

Robusta coffee also recouped some of this week's losses, while cocoa prices fell.

SUGAR

July raw sugar was up 0.28 cent, or 1.8 percent, at 15.71 cents per lb at 1355 GMT, regaining some ground after the prior session's slide to a one-year low of 15.35 cents.

The contract, however, remained on track for a weekly loss of almost 5 percent.

Dealers said the main focus on Friday was the expiry of the May contract, with a delivery of one million tonnes generally anticipated.

They were also keeping a close watch on industrial unrest in top producer Brazil.

"We do not believe there is anything to be concerned about from a price perspective, but it is a development worth keeping an eye on," INTL FCstone analyst Darren Stetzel said in a market note.

August white sugar was up $4.60 at $451.00 a tonne.

COFFEE

Robusta coffee futures were higher, but remained on track for a weekly loss of around three percent following a bout of fund long liquidation earlier in the week.

July robusta rose $21, or 1.1 percent, to $1,931 a tonne. The second month slid to a low of $1,871 on Tuesday, its weakest since Sept. 6, 2016.

Dealers said the market was underpinned by a slowdown in producer selling following the recent decline in prices.

Vietnam, the world's largest robusta producer, will export an estimated 604,000 tonnes (10.1 million 60 kg bags) of coffee in the first four months of 2017, down 8.8 percent from a year ago, the government said on Friday.

July arabica coffee rose 0.15 cents, or 0.1 percent, to $1.2965 per lb.

COCOA

London cocoa prices were lower, weighed partly by the strength of sterling, which climbed to a seven-month high against the dollar on Friday.

July London cocoa fell 19 pounds, or 1.3 percent, to 1,445 pounds a tonne.

Dealers said the market was also still struggling to absorb a huge crop in Ivory Coast with should contribute to a large global surplus in the current 2016/17 season.

July New York cocoa fell $20, or 1.1 percent, to $1,848 a tonne.

 

 

Copyright Reuters, 2017
 

 

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