LONDON: ICE raw sugar futures fell on Tuesday as funds remained on the sidelines after pushing prices above 15 cents and as the wider market euphoria over news of promising coronavirus vaccine results settled down somewhat. March raw sugar fell 0.07 cents, or 0.5%, to 14.81 cents per lb by 1119 GMT, having hit an eight-month high of 15.23 cents last week.
Dealers said prices look set to remain range-bound for the time being, with funds content to remain long but not to extend their position much more. India, a top sugar producer, has revived a proposal to get sugar mills to export 6 million tonnes of the sweetener by providing incentives for overseas sales in the 2020/21 season, two government sources said.
They added, however, that the government has yet to agree the amount of subsidy. Dealers said the market was awaiting official Indian government comment on the matter, as well as the official subsidy amount, which would determine how much the country is likely to export.
December white sugar, which expires on Friday, dipped $1.60, or 0.4%, to $402. December arabica coffee edged up 0.3 cents, or 0.3%, to $1.0715 per lb. Brazil is tightening its grip on the global arabica coffee market as its beans surge into ICE Futures exchange warehouses for the first time in a move that could put pressure on benchmark prices.
ICE arabica stocks are at their highest in two months thanks to the Brazilian influx. Underpinning arabica, however, are concerns that recent dry weather could contribute to a significant production decline in top grower Brazil next year. January robusta coffee rose $17, or 1.3%, to $1,364 a tonne.
March New York cocoa fell $13, or 0.5%, to $2,378 a tonne, reversing some of Monday's gains. Ivory Coast cocoa grinders processed 49,000 tonnes of beans in October, up 4% from the same period last season. March London cocoa was down 27 pounds, or 1.7%, at 1,612 pounds a tonne.
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