Raw sugar sinks amid risk off sentiment, India export subsidy rumours

LONDON: Raw sugar futures on ICE fell on Friday amid risk-off sentiment in the wider markets and renewed rumours of an India export subsidy deal, while London cocoa rallied as sterling sank on fears over a no-deal Brexit.

SUGAR

March raw sugar fell 0.7pc, to 14.56 cents per lb at 1342 GMT, extending the prior session's 2pc loss.

World shares slipped and sterling skidded to its lowest in nearly a month as markets confronted the risk of Britain leaving the European Union without a trade deal.

Dealers said renewed rumours that the Indian government is getting closer to announcing a long-delayed sugar export subsidy were weighing on prices.

One dealer said while sugar remains ultimately rangebound despite its daily gyrations, there is growing talk that agri-commodities will gain next year amid a weakening dollar, inflation, La Nina, and strong Chinese demand.

March white sugar fell 0.7pc to $398.80 tonne.

COCOA

March London cocoa?? rose 3.2pc to 1,782 pounds per tonne? as sterling skidded, making the sterling-priced futures contract cheaper for non-British investors.

March New York cocoa rose 1.8pc to $2,613 a tonne after dipping to its weakest since Nov. 18 on Thursday.

The ruling party in Ghana, the world's second-largest cocoa producer, held a one-seat lead in parliament with one race still to be decided, the election commission said, as the main opposition leader rejected the outcome.

COFFEE

March arabica coffee slipped 0.3pc to $1.2075 per lb, having closed up more than 3pc on Thursday as the Brazilian real surged.

March robusta coffee slipped 0.2pc to $1,348 a tonne.