Raw sugar recovers as October contract expire approaches
- Arabica coffee finished stable, after touching a new two-month earlier in the session.
- December white sugar settled up $4.90, or 1.3%, at $371.90 a tonne.
NEW YORK/LONDON: Raw sugar futures on ICE rallied on Tuesday after sharp losses in the previous session as the Brazilian currency recovered partially and the first-month contract nears expiration.
Arabica coffee finished stable, after touching a new two-month earlier in the session.
SUGAR
October raw sugar settled up 0.4 cents, or 3.2%, at 12.99 cents per lb, recovering the full losses seen in Monday's session.
Open interest in the spot contract was still large at around 60,000 lots before the expiration on Wednesday, with dealers wondering about a potential large delivery.
Dealers said Brazilian sugar stocks are high because the country has been producing as much as possible, opening the way for a sizeable delivery.
Sentiment was bearish in wider markets, with equities and oil down ahead of the first US presidential debate and as COVID-19 cases continue to rise.
The real recovered against the dollar, however, deterring Brazilian selling of dollar-priced sugar by lowering returns in local currency terms.
December white sugar settled up $4.90, or 1.3%, at $371.90 a tonne.
COFFEE
December arabica coffee was little changed at $1.0955 per lb, having touched a two-month low of $1.0830 earlier in the session.
Soaring warehouse stocks in Brazil after a huge harvest are weighing on coffee, though reports that the recent rains in the country were below expectations could limit losses going forward.
November robusta coffee settled down $23, or 1.7%, at $1,304 a tonne.
Coffee exports from Vietnam, the world's top robusta producer, are expected to drop 1.4% from a year earlier in the first nine months of this year, data showed.
COCOA
December New York cocoa settled up $1, or 0.0%, to $2,588 a tonne.
Ghana's cocoa board (Cocobod) signed a $1.3 billion pre-export finance deal for the 2020/21 cocoa season through a syndicated loan, following reports earlier this year that its usual lenders had declined to underwrite the risk.
December London cocoa settled down 18 pounds, or 1.0%, to 1,833 pounds per tonne.
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