Raw sugar climbs to one-month high, arabica also up

LONDON: Raw sugar futures on ICE climbed to a one-month high on Monday boosted by further fund buying while arabica coffee and cocoa prices also advanced.

SUGAR

March raw sugar ?was up 0.09 cent, or 0.7pc, at 13.60 cents per lb at 1113 GMT after climbing to a one-month peak of 13.62 cents.

Dealers said the market was mainly boosted by funds continuing to expand an already large net long position.

Expectations that production in number two exporter Thailand could fall further in 2020/21 due to low cane availability provided background support.

"Thailand's sugar production has been soft this season (2019/20) as well due to weather, which has helped tighten the sugar market considerably," ING said in a market note.

Dealers said the expiry of the October position on Wednesday would provide a short-term focus with a fairly large delivery expected. The open interest, as of Sept. 24, stood at 77,610 lots.

December white sugar rose $1.50, or 0.4pc, to $378 a tonne.

COFFEE

December arabica coffee rose 0.65 cents, or 0.6pc, to $1.1430 per lb, edging further away from a two-month low of $1.0905 set last week.

Dealers said a pick-up in roaster demand following the recent fall in prices has helped the market to regain some ground although large warehouse stocks in top exporter Brazil remain a bearish influence.

November robusta coffee fell $6, or 0.4pc, to $1,352 a tonne.

COCOA

December London cocoa ??rose 3 pounds, or 0.2pc, to 1,870 pounds per tonne with gains capped by the strength of sterling.

Cocoa arrivals at ports in top grower Ivory Coast reached 2.074 million tonnes between Oct. 1 and Sept. 27, exporters estimated on Monday, down 5.1pc from 2.185 mln tonnes over the same period last season.

December New York cocoa ??was up $41, or 1.6pc, at $2,609 a tonne.