Raw sugar edges up as dollar weakens, coffee also higher

LONDON: Sugar, coffee and New York cocoa futures on ICE rose on Thursday buoyed by the weakness of the dollar, while sterling-denominated London cocoa prices eased.

The dollar fell to its lowest in more than two years against the pound and euro on Thursday.

SUGAR

March raw sugar was up 0.06 cents, or 0.4pc, to 14.55 cents per lb at 1123 GMT, extending its rebound from a six-week low of 14.09 cents set earlier this week.

Dealers said they expected Indian sugar exporters to try to quickly secure sales after the government approved a subsidy programme for up to 6 million tonnes on Wednesday.

They also noted any significant recovery in prices would depend on whether funds start to reinstate long positions which have been trimmed significantly during the last month.

March white sugar rose $0.90, or 0.2pc, to $399.70 a tonne.

COFFEE

March arabica coffee rose 0.65 cents, or 0.5pc, to $1.2725 per lb, edging up towards a 3-month high of $1.2860 set on Wednesday.

Dealers said a larger than expected decline in U.S. green coffee stocks to the lowest level in 5 years earlier this week had also helped to give impetus to the recent rise in prices.

March robusta coffee futures were up $6, or 0.4pc, at $1,384 a tonne.

Coffee trading was subdued in top robusta producer Vietnam though supply was steady as favourable weather supported cherry picking and drying, traders said on Thursday.

COCOA

March New York cocoa was up $8, or 0.3pc, at $2,525 a tonne.

Dealers said the weak dollar helped the market find some support although the overall trend remained downward, with crop prospects improving in Ivory Coast and further weakness in demand expected due to the COVID-19 pandemic.

March London cocoa fell 8 pounds, or 0.5pc, to 1,680 pounds a tonne.