LONDON: Raw sugar and arabica coffee futures on ICE were higher on Tuesday, boosted partly by Brazil’s real currency, which rebounded after last week’s steep losses.
A stronger real reduces dollar-denominated prices in local currency terms in Brazil, the world’s top exporter of both sugar and coffee, and can deter producer selling.
March raw sugar rose 0.07 cents, or 0.4%, to 15.81 cents per lb by 1520 GMT. The market earlier dipped to a low of 15.62 cents, its weakest since Jan. 13.
Dealers said gains were curbed by rains in Brazil which boosted cane growth while continued export sales by India ensured that supplies remained ample.
A poor crop in Thailand has, however, provided some support.
March white sugar fell $0.90, or 0.2%, to $444.30 a tonne.
March arabica coffee rose 2 cents, or 1.6%, to $1.2525 per lb.
Dealers said there were still concerns about dry weather in parts of Brazil despite recent rains in some areas.
March robusta coffee was up a marginal $1, or 0.1%, at $1,310 a tonne.
Dealers said the market had been weighed down recently by selling by farmers in top robusta producer Vietnam ahead of next month’s Tet holiday.
March New York cocoa was up $38, or 1.5%, at $2,546 a tonne.
Dealers said the comparatively slow pace of port arrivals in top grower Ivory Coast provided some support, although the outlook for the upcoming mid-crop remains favourable and there remain concerns about a large volume of unsold supplies in the West African country.
March London cocoa rose 4 pounds, or 0.2%, to 1,724 pounds a tonne.
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