Raw sugar dips below 12 cents, arabica hits 8-month peak

LONDON: Raw sugar futures on ICE hit a one-month low on Friday, heading for around 5% losses for the week on weak physical demand and expectations that top producer India's output might return to more normal levels next season.

SUGAR

October raw sugar fell 0.1 cent, or 0.8%, to 11.97 cents per lb at 1517 GMT, having hit a one-month low of 11.86 on Thursday.

Dealers said sentiment in sugar has turned negative, with a wide discount for October futures versus March indicating weak physical demand amid still strong supplies from Brazil, which vies with India for top producer status.

Output in India has been below par this season but is expected to recover next season. The International Sugar Organisation sees Indian output rising to 31.5 million tonnes in 2020/21 from 27.2 million in 2019/20, although it also expects global demand to also recover that year, leaving the market in a small deficit.

October white sugar rose $0.90, or 0.3%, at $354.50 a tonne.

COFFEE

December arabica coffee rose 1.5 cents, or 1.1%, to $1.3270 per lb, having hit a fresh eight-month peak of $1.3545.

Arabica remains underpinned by ongoing falls in exchange stocks, which are at 20-year lows, having dipped below 1.2 million tonnes at latest count, although output in top producer Brazil continues to surge and demand remains lacklustre. .

British sandwich and coffee chain Pret A Manger will launch a subscription service for drinks, trying out a new business model to help it survive the coronavirus crisis.

Coffee company JDE Peet's has named Fabien Simon as its new chief executive, replacing Casey Keller, the company said.

November robusta coffee rose $29, or 2%, to $1,439 a tonne, also underpinned by falls in exchange stocks.

COCOA

December London cocoa rose 1 pounds, or 0.1%, to 1,799 pounds per tonne, having hit a three-month peak of 1,832 pounds on Thursday.

December New York cocoa fell $38, or 1.5%, to $2,596 a tonne, after hitting a six-month peak on Thursday.