Raw sugar sets new 5-month peak, coffee rises more than 3pc
- Arabica coffee rose for the second consecutive session, gaining more than 3%.
- October white sugar settled up $5.30, or 1.4%, at $380.50 a tonne.
- December London cocoa settled down 1 pound, or 0.1%, to 1,696 pounds per tonne, weighed down in part by sterling's strength against the dollar.
NEW YORK/LONDON: Raw sugar futures on ICE closed higher at a new five-month peak on Thursday as funds extended long positions amid some positive fundamental news.
Arabica coffee rose for the second consecutive session, gaining more than 3%.
SUGAR
October raw sugar settled up 0.27 cents, or 2.1%, at 13.11 cents per lb, the highest level since March 6.
Dealers said the run-up gathered momentum after the breach of resistance at 13.00 cents, with a strong close on Wednesday helping to create a more bullish outlook on price charts.
Other supportive factors included the prospect of a further drop in production in Thailand and Russia in the 2020/21 season and demand from Pakistan and China.
Broker and analyst firm Czarnikow said Russian production should fall 25% due to impacts from a heat wave in beet producing areas.
October white sugar settled up $5.30, or 1.4%, at $380.50 a tonne.
COFFEE
December arabica coffee settled up 3.85 cents, or 3.4%, at $1.181 per lb, climbing back towards last week's 4-1/2-month peak of $1.2890.
Dealers noted a rebound in Brazil's real provided some support. The weakness in the currency of the world's top producer contributed to the decline in prices during the last few days.
Brazilian farmers have sold more than half of the new crop.
November robusta coffee settled up $40, or 3.0%, at $1,382 a tonne.
Dealers continued to monitor the spread of the coronavirus in top robusta producer Vietnam, given concern it could disrupt the flow of supplies.
Vietnam's domestic coffee prices were flat this week as trading activity was impacted by low stocks and coronavirus lockdowns in some parts of the coffee-growing areas, traders said on Thursday.
COCOA
December New York cocoa settled up $15, or 0.6%, to $2,480 a tonne, as the market continued to consolidate after retreating from a five-month high of $2,535 set on Monday.
December London cocoa settled down 1 pound, or 0.1%, to 1,696 pounds per tonne, weighed down in part by sterling's strength against the dollar.
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