Raw sugar edges back up towards one-month high, arabica recovers

NEW YORK/LONDON: Raw sugar prices edged back up towards the previous session's one-month high on Thursday, boosted by worries over adverse weather conditions in several growing regions.

Arabica coffee closed up for the first time after eight consecutive sessions of falls.

SUGAR

March raw sugar settled up 0.04 cent, or 0.3%, at 13.37 cents per lb, after setting a one-month high on Wednesday of 13.57.

Sugar's gains bucked a slide in global shares and a rise in the dollar on investor concern about another economic hit from the COVID-19 pandemic.

Marex Spectron analyst Robin Shaw said the market was focussed near term on adverse weather in regions including Centre-South Brazil, Europe and Russia, although overall market supplies are plentiful.

The market is also concerned India, a top sugar producer, could offer less generous sugar export incentives for the next season.

December white sugar settled up $3.00, or 0.8%, at $374.20 a tonne.

COFFEE

December arabica coffee settled up 0.65 cents, or 0.6%, at $1.1115 per lb, having touched a two-month low of $1.0905 on Wednesday.

Arabica is steadying after plunging in the last eight sessions on an improving outlook for the 2021/22 coffee crop in top producer Brazil following rains. A weakened Brazilian real also prompted some exporters to sell dollar-priced coffee.

A dealer said roasters had been tempted back into the market to buy coffee at around the $1.10 per lb level.

November robusta coffee settled up $3, or 0.2%, at $1,352 a tonne.

Coffee trading volumes remained tepid in Vietnam, the world's top robusta producer, though premiums in both Vietnam and Indonesia rose to compensate for subdued London prices.

COCOA

December London cocoa settled up 24 pounds, or 1.3%, to 1,891 pounds per tonne.

December New York cocoa settled up $19, or 0.7%, to $2,599 a tonne.