Sugar rises above 14-cent level for first time since March; coffee up nearly 2pc
- Arabica coffee futures jumped nearly 2%, continuing to recover from last week's two-month low.
- December white sugar settled up $5.20, or 1.4%, at $384.10 a tonne, having hit its highest level since mid-June at $384.20.
NEW YORK/LONDON: Raw sugar futures rose above 14 cents per pound for the first time since March on Wednesday, disregarding jitters in wider financial markets and supported by worries over adverse weather in several producing regions.
Arabica coffee futures jumped nearly 2%, continuing to recover from last week's two-month low.
SUGAR
March raw sugar settled up 0.26 cent, or 1.9%, at 14.14 cents per lb, the highest since March 2.
Dealers cited concern over adverse weather in top exporter Brazil, as well as in Thailand and Russia, in addition to disease problems in the European Union.
"Brazil has been facing a major drought for several months. The level of rainfall in the next month will become an essential driver of prices," Agritel analysts said in a note.
A US-based broker said there was also support from continued fund buying as speculators boost an already large long position.
December white sugar settled up $5.20, or 1.4%, at $384.10 a tonne, having hit its highest level since mid-June at $384.20.
COFFEE
December arabica coffee rose for the second consecutive session, gaining 1.95 cents, or 1.8%, on Wednesday to $1.096 per lb. Arabica hit more than a two-month low of $1.049 on Friday.
Arabica is under pressure from a record harvest in top producer Brazil while demand has been hit by continuing coronavirus restrictions at cafes and restaurants.
Exchange stocks
"The market will be focused on the amount of semi-washed from Brazil hitting the exchange, and we believe the coffee will arrive and the (grading pass) rate will improve," Rabobank said.
Brazil will have a below-average coffee crop in 2021 owing to prolonged drought in recent months, local agronomists said.
November robusta coffee settled down $9, or 0.7%, at $1,246 a tonne.
COCOA
December London cocoa settled up 12 pounds, or 0.7%, to 1,710 pounds per tonne.
December New York cocoa settled up $15, or 0.6%, to $2,452 a tonne.
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