Raw sugar falls as investors liquidate long, bet on Indian exports

LONDON: Raw sugar futures on ICE slipped on Monday as investors continued to liquidate their long positions, mindful of improved weather in top producer Brazil and renewed talk that India will announce a sugar export subsidy.

SUGAR

March raw sugar fell 0.7pc to 14.33 cents per lb at 1218 GMT, having posted its third consecutive weekly loss last week.

Speculators continued to reduce a once-massive bullish bet in raw sugar - the largest since 2016 - with a cut of 11,625 contracts in the week to Dec 8, bringing down their total net long position to 164,705 contracts, data showed.

Rabobank said improving weather in top producer Brazil is weighing on prices.

There is also ongoing talk that India is getting closer to announcing a long-delayed sugar export subsidy.

Dealers said it looks likely raw sugar will slip to 14 cents near term.

March white sugar fell 0.8pc to $392.60 a tonne.

COCOA

March London cocoa fell 1.1pc, to 1,760 pounds per tonne? as sterling surged on hopes of a post-Brexit trade deal between the UK and the European Union, making the sterling-priced futures contract costlier for non-British investors.

March New York cocoa edged up 0.2pc to $2,626 a tonne, underpinned by low ICE-certified stocks.

Speculators reduced their bullish bet in New York cocoa in the week to Dec 8 by 6,957 contracts to a net long position of 12,790.

Cocoa arrivals at ports in top grower Ivory Coast reached 909,000 tonnes between Oct. 1 and Dec 13, exporters estimated, down 0.4pc from the same period last season.

COFFEE

March arabica coffee rose 0.7pc to $1.2245 per lb.

Speculators' reduced their net long position in arabica in the week to Dec 8 by 1,030 contracts, bringing their total net long position down to 15,174 contracts.

March robusta coffee rose 0.6pc to $1,365 a tonne.

Top robusta producer Vietnam's coffee exports in November fell 8.4pc from October to 83,730 tonnes, customs data showed.