Raw sugar gains on uncertainty over Indian export policy

LONDON: Raw sugar futures on ICE rose on Monday amid uncertainty over India's sugar export policy, overshadowing deepening gloom across financial markets as COVID-19 infections rose and the US presidential election approached.

SUGAR

March raw sugar rose 0.1 cent, or 0.7%, at 14.46 cents per lb at 1141 GMT. The contract hit an eight-month peak of 15.04 cents last week.

Sugar is being underpinned by bets that India, a top producer, will lower its sugar export subsidies this season, but jitters in the wider financial markets are limiting its upside for now.

Oil fell on worries over widening coronavirus lockdowns in Europe and concerns over potential US election turbulence, though world shares managed to edge up off one month lows on strengthening factory data in China and Europe.

The dollar rose meanwhile, making dollar-priced commodities like sugar costlier for non-US investors.

"A real (sugar price) collapse remains on the cards, simply due to the extreme long position of the Funds; and in the extremely uncertain (US) election week ahead," said Marex Spectron in a note.

Speculators raised their net long position in ICE raw sugar in the week to Oct. 27 by 10,774 contracts to 211,334 contracts.

December white sugar rose $3.30, or 0.9%, to $393.80 a tonne.

COCOA

March New York cocoa fell $18, or 0.8%, to $2,285 a tonne, having hit a three-month low of $2,273.

Cocoa is under pressure amid concerns that coronavirus lockdowns in parts of top cocoa consumer Europe could curb demand for the chocolate ingredient.

Limiting losses however, investors are keeping a close watch on the outcome of Saturday's presidential election in top producer Ivory Coast amid fears it may be followed by further violence.

Cocoa arrivals at ports in Ivory Coast reached 406,000 tonnes between Oct. 1 and Nov. 1, exporters estimated, up 12.1% year-on-year.

Speculators raised their net long position in ICE New York cocoa futures by 4,732 contracts to 9,080 contracts in week to Oct. 27.

March London cocoa fell 18 pounds, or 1.1%, to 1,599 pounds per tonne.

COFFEE

January robusta coffee dipped $3, or 0.2%, to $1,348 a tonne, having touched a one-month high last week after a typhoon hit top producer Vietnam's key coffee growing region.

Indonesia exported 16,345.6 tonnes of robusta coffee from Sumatra in October, down 39% year-on-year.

December arabica coffee fell 0.9 cent, or 0.8%, to $1.0355 per lb, having hit a three-month low last week.

Speculators cut their net long position in ICE arabica coffee by 5,841 contracts to 9,648 contracts in the week to Oct. 27.