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Raw sugar prices touch five-week high, arabica also gains

  • March New York cocoa was up $11, or 0.4%, at $2,608 a tonne.
  • March arabica coffee rose 2.85 cents, or 2.3%, to $1.2825 per lb.
  • March raw sugar was up 0.03 cents, or 0.2%, at 15.31 cents per lb.
Published December 31, 2020

LONDON: Raw sugar futures on ICE climbed to a five-week high on Thursday, boosted by tightening supplies and a weakening dollar, while arabica coffee prices also advanced.

SUGAR

March raw sugar was up 0.03 cents, or 0.2%, at 15.31 cents per lb by 1150 GMT after setting a five-week high of 15.48 cents.

Dealers said investors were re-establishing long positions after scaling them back for most of the month.

Supportive factors included the prospect of a further decline in production in major exporter Thailand, where the harvest is off to a slow start and drought appears to be taking its toll on cane yields.

The front month is on track for an annual gain of about 14%, with the International Sugar Organization forecasting a global deficit of 3.5 million tonnes in the 2020/21 season.

March white sugar rose $0.40, or 0.1%, to $418.80 a tonne and was on track for an annual gain of nearly 17%.

COFFEE

March arabica coffee rose 2.85 cents, or 2.3%, to $1.2825 per lb.

The front month is on track for a small loss of 1.1% on the year after a huge crop in Brazil, though the prospect of a smaller crop in the South American country next year has helped to underpin prices.

March robusta coffee futures were up $6, or 0.4%, at $1,382 a tonne and on track to end the year virtually unchanged from a year ago.

COCOA

March New York cocoa was up $11, or 0.4%, at $2,608 a tonne and on track for an annual gain of about 2.7% boosted partly by a decline in certified exchange stocks.

March London cocoa rose 3 pounds, or 0.2%, to 1,740 pounds a tonne but was on course for an annual loss of around 4.3%, pressured partly by a weakening dollar.

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