Raw sugar edges higher, cocoa also climbs

LONDON: Raw sugar futures on ICE edged higher on Tuesday, buoyed by a more supportive economic backdrop as global equities rose to a record high, while cocoa prices also advanced.

SUGAR

March raw sugar rose 0.02 cents, or 0.1%, to 16.29 cents per lb at 1506 GMT.

Dealers said volumes this week have been boosted by index funds rolling positions out of the March contract, which expires on Feb. 26, into May.

March white sugar rose $1.40, or 0.3%, to $473.40 per tonne. The front month rose to a peak of $479.70 on Monday, its highest since April 2017.

Dealers said a delivery of around 400,000 to 500,000 tonnes of white sugar was expected against the March contract, which expires on Friday.

COCOA

May New York cocoa was up $12, or 0.5%, at $2,457 a tonne with the market underpinned by the strength of the March position in the run-up to next week's expiry.

Dealers noted March's premium to May rose sharply, climbing to about $161 on Tuesday, up from $139 at the close on Monday.

Strong demand to receive cocoa against the December contract late last year led to a sharp rise in the front month's premium to more than $200 a tonne at one point.

May London cocoa rose 6 pounds, or 0.4%, to 1,663 pounds a tonne.

COFFEE

March arabica coffee fell 1.05 cents, or 0.85%, to $1.2305 per lb, weighed down by the weakness of the currency of top arabica producer Brazil.

A weak real boosts dollar-denominated prices in local currency terms in Brazil and can spark producer selling.

March robusta coffee was up $2, or 0.15%, at $1,337 a tonne in quiet conditions with top robusta producer Vietnam set to begin Tet celebrations on Wednesday.