SOFTS-Raw sugar rises on India uncertainty, cocoa climbs

LONDON: Raw sugar futures on ICE were higher on Monday, boosted partly by uncertainty about the extent to which India might subsidise exports in the current season, while cocoa prices also rose.

SUGAR

March raw sugar? was up 0.09 cent, or 0.6pc, to 14.52 cents per lb at 1003 GMT.

The front month set a 7-1/2 month peak of 14.55 cents a week ago.

Dealers noted fund buying had helped to fuel the recent run-up, with weekly CFTC data showing a further increase in bullish bets.

The market was supported by the lack of an announcement from India on export subsidies for the 2020/21 season.

Analysts Green Pool said in note that India had exported a record 5.84 million tonnes in 2019/20, with the export subsidy level equating to six to seven cents per lb.

"India's COVID crisis is a major budget issue for government and perhaps the finance ministry is making the case that subsidies are wasteful," Green Pool said.

India needs to export 6 million tonnes of sugar in the 2020/21 marketing year started on Oct. 1 as production is set to jump on a higher planted area, a leading trade body said on Monday.

December white sugar rose by $1.40, or 0.35pc, to $397.40 a tonne.

COCOA

March London cocoa was up 16 pounds, or 1.0pc, at 1,657 pounds a tonne, pulling away from an eight-week low of 1,627 pounds set on Friday.

Dealers were keeping a close watch on tensions in top grower Ivory Coast ahead of next week's presidential election.

Local offices of Ivory Coast's ruling party were ransacked and the house of an opponent of President Alassane Ouattara was set on fire, as rival supporters clashed in an eastern city, residents said on Saturday.

December New York cocoa ??was up $48, or 2.0pc, at $2,409 a tonne.

COFFEE

December arabica coffee fell by 0.05 cents, or 0.05pc, to $1.0720 per lb.

January robusta coffee fell by $3, or 0.2pc, to $1,294 a tonne.