SOFTS-Raw sugar extends gains, arabica retreats towards 2-month low
- March raw sugar was up 0.1 cents, or 0.8pc, at 13.37 cents per lb at 1328 GMT??, having gained 4pc last week to mark three consecutive weeks of gains.
LONDON: Raw sugar futures on ICE rose on Monday on signs supplies will tighten and an upbeat sentiment in wider financial markets, while arabica coffee headed lower again.
SUGAR
March raw sugar was up 0.1 cents, or 0.8pc, at 13.37 cents per lb at 1328 GMT??, having gained 4pc last week to mark three consecutive weeks of gains.
"We can now see the end of the harvest and there is definitely not going to be a surplus in Brazil. The implication is 2021 will be a re-run of 2020, but with a bit less supply and probably a bit more demand," Marex Spectron said in a note.
"But just at the moment the rally may have over-extended; macros look bearish (crude stuck at $40, and COVID resurgent); the funds are long and demand seems to have dried up for whites," the broker added.
December white sugar rose $1.90, or 0.5pc, to $375.60 a tonne.
COFFEE
December arabica coffee fell 0.6 cents, or 0.5pc, to $1.0845 per lb??, after touching a more than two-month low of $1.0490 on Friday.
ICE speculators reduced their net long position in arabica futures in the week to Sept. 29 by 6,449 contracts to 25,645 contracts.
Coffee is under pressure from strong exports from top producer Brazil after a huge harvest this year.
The International Coffee Organization estimates a global surplus of 1.54 million 60-kg bags in 2019/20 and says high exports from Brazil in the next few months will limit any price recovery.
Colombian coffee producers must prepare for the La Niña weather pattern, which could bring above-average rainfall, negatively impacting crops and exacerbating coffee rust.
November robusta coffee fell $19, or 1.5pc, to $1,271 a tonne.
COCOA
December London cocoa fell 15 pounds, or 0.9pc, to 1,718 pounds per tonne, compared with a two-week low of 1,707 on Friday.
Cocoa arrivals at ports in top grower Ivory Coast reached 2.074 million tonnes for the year to Sept. 30, down 4.8pc from a year earlier.
December New York cocoa fell $14, or 0.6pc, to $2,468 a tonne.
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