Raw sugar turns lower after rally, coffee consolidates

LONDON: Raw sugar futures on ICE turned lower on Tuesday with profit- taking emerging after a rally linked to a pick-up in physical demand and the possibility adverse weather could curb production in major exporter Thailand.

SUGAR

October raw sugar fell 0.14 cents, or 1.2pc, to 11.98 cents per pound? by 1355 GMT after peaking at 12.27 cents, the highest level for the front month since July 8.

Dealers said demand from China had been strong in the past few weeks and potential buying from Pakistan also boosted sentiment.

Drought in Thailand is also a supportive factor, denting the production outlook in the world's second-largest sugar exporter after Brazil.

October white sugar fell $2.50, or 0.7pc, to $362.70 per tonne.

COFFEE

September arabica coffee was unchanged at $1.1040 per pound with the market consolidating after its recent run-up.

Commerzbank technical analyst Axel Rudolph said in a note that the market was finally building a base and price charts were pointing towards further gains.

"We will retain our now bullish forecast while the price of coffee remains above the 55-day moving average at 101.73 (cents per lb) on a daily chart closing basis," he said.

September robusta coffee up $2, or 0.45pc, to $1,340 a tonne.

COCOA

December London cocoa ??was down 4 pounds, or 0.25pc, at 1,572 pounds per tonne.

Dealers continued to monitor the development of the main crop in top grower Ivory Coast with production seen rising in the 2020/21 season that starts on Oct. 1.

Rainfall last week in most of Ivory Coast's main cocoa growing regions was below average, but growing conditions are still good enough to ensure the steady development of the October-to-March main crop, farmers said on Monday.

September New York cocoa fell $22, or 1.0pc, to $2,264 a tonne.