Raw sugar futures rise, cocoa and coffee also climb

LONDON: Raw sugar futures on ICE rose on Wednesday, buoyed partly by broad-based gains in agricultural commodity markets, while cocoa and coffee prices also advanced.

SUGAR

March raw sugar was up 0.14 cents, or 0.9%, at 15.60 cents per lb by 1241 GMT.

Dealers said the market was struggling to regain upward momentum after climbing to a 3-1/2 year peak last week with weak demand from China seen as a bearish influence.

Sugar traders in China, one of the world's top buyers of the sweetener, have sharply cut their overseas purchases as their import profits dry up and excess sugar piles up in the country's bonded warehouses.

March white sugar was up $4, or 0.9%, at $440 a tonne.

Indonesia will import 646,944 tonnes of white sugar in January-March this year, Kasdi Subagyono, the country's director general of plantations said on Wednesday.

COCOA

March New York cocoa was up $25, or 1%, at $2,523 a tonne.

Dealers said the market was performing comparatively well after a sharp fall in prices early this month, but fundamentals remain bearish with demand weak and supplies more than ample.

A pandemic-induced slowdown in global chocolate demand has led to a pile-up of about 100,000 tonnes of cocoa beans in Ivory Coast's interior, five exporters told Reuters, as farmers struggle to get by with lower-than-promised prices.

They noted fourth quarter grind data would be closely watched for further indications on demand trends. North American data is due to be released on Thursday while the European grind report is scheduled for release on Jan. 20.

March London cocoa rose 18 pounds, or 1.1%, to 1,712 pounds a tonne.

COFFEE

March arabica coffee rose 1.2 cents, or 1%, to $1.2260 per lb.

March robusta coffee was up $11, or 0.8%, at $1,313 a tonne.