Raw sugar climbs to 8-1/2 month high, cocoa also up

LONDON: Raw sugar prices on ICE rose to an 8-1/2 month high on Monday boosted by nearby supply tightness while cocoa futures were also sharply higher.

SUGAR

March raw sugar rose 0.44 cents, or 2.9%, to 15.40 cents per lb by 1303 GMT after climbing to a peak of 15.47 cents, the highest level for the front month since Feb. 25.

Dealers noted the front month's premium to May had been rising boosted by nearby supply tightness.

"In the short term there is not much room for manoeuvre; all exporters will be shipping as fast as they can, and all importers will be postponing demand as much as they can," Marex Spectron analyst Robin Shaw said.

Dealers said the prospect of a poor crop in France provided further support for prices.

The market was also keenly awaiting news on India's export policy with uncertainty about the extent to which government support might be available given financial issues related to the COVID-19 pandemic.

March white sugar was up $11.20, or 2.75%, at $418.00 per tonne.

A total of 618,300 tonnes of white sugar has been tendered against the December contract on ICE Futures Europe, exchange data showed on Monday.

Dealers said the inclusion of Algerian sugar may indicate a lack of demand in the North African region.

COCOA

March New York cocoa rose $86, or 3.6%, to $2,451 a tonne.

Dealers noted there was a lack of cocoa available to tender against the December contract which had led to a surge in its price of more than 12% on Monday.

March London cocoa rose 51 pounds, or 3.2%, to 1,659 pounds per tonne.

COFFEE

March arabica coffee was up 2.4 cents, or 2.1%, to $1.1460 per lb.

January robusta coffee rose $26, or 1.8%, to $1,436 a tonne.