Raw sugar rises on tight supplies, cocoa also climbs

LONDON: Raw sugar futures on ICE were higher on Tuesday, with supplies seen tight during the first quarter of this year, while cocoa prices also rose.

SUGAR

March raw sugar was up 0.09 cents, or 0.55%, at 16.54 cents per lb by 1240 GMT, edging up towards a 3-1/2 year peak of 16.75 cents set last week.

Dealers said supportive factors included buying interest from Indonesia and Pakistan along with the continued slow pace of the harvest in Thailand with the global market expected to be tight during the first quarter of this year.

A slowdown in demand from China is, however, anticipated after a buying spree last year.

China imported 5.27 million tonnes of sugar in 2020, up 55.5% from a year earlier, according to General Administration of Customs data on Tuesday.

March white sugar was down $4.10, or 0.9%, at $463.40 a tonne after setting a 3-1/2 year high of $468.70 on Monday, when the New York-based raws market was shut.

COCOA

March New York cocoa was up $55, or 2.2% at $2,582 a tonne, partly adjusting to gains in London on Monday when the US-based market was shut.

Dealers were keeping a close watch on potential disruptions to the flow of cocoa out of top grower Ivory Coast.

Ivory Coast's largest growers' union called on its members on Monday to strike and threatened to block port deliveries in response to low prices and warehouse backlogs.

The market was also boosted partly by better-than-expected fourth quarter grind data last week from North America and Asia.

The European fourth quarter grind is due to be issued on Wednesday, with traders expecting a year-on-year decline of around 2% to 4%.

March London cocoa rose 16 pounds, or 0.9%, to 1,771 pounds a tonne.

COFFEE

March arabica coffee fell 1.75 cents, or 1.4%, to $1.2640 per lb.

March robusta coffee was down $1, or 0.1%, at $1,342 a tonne.