Raw sugar climbs on improving economic outlook

LONDON: Raw sugar futures on ICE were higher on Tuesday, buoyed partly by further gains in global equity markets on sentiment that the rollout of COVID-19 vaccines could lead to a durable economic recovery.

SUGAR

March raw sugar rose by 0.18 cents, or 1.1%, to 16.56 cents per lb by 1158 GMT. The front month had peaked at 17.05 cents last week, its highest since April 2017.

Dealers said the market was beginning to focus on what sugar was available to deliver against the March contract, which expires at the end of next week, with prices underpinned by the limited availability of supplies.

May white sugar fell by $1, or 0.2%, to $455.40 per tonne. The contract rose by almost 1% on Monday when the raw sugar market was closed.

Sugar group Tereos on Tuesday reported higher third-quarter core earnings on the back of improving sugar prices, but the French company said factors including the coronavirus pandemic and a weak Brazilian real would curb profits in the year ahead.

COCOA

May London cocoa fell by 8 pounds, or 0.5%, to 1,654 pounds a tonne with the strength of sterling against the dollar weighing on prices.

Dry weather and heat last week in Ivory Coast's central cocoa-growing regions threatened to reduce the quantity and quality of the April-to-September mid-crop, farmers said on Monday, while conditions remained good in other regions.

May New York cocoa was up $8, or 0.3%, at $2,441 a tonne.

COFFEE

May arabica coffee rose by 1.45 cents, or 1.2%, to $1.2450 per lb, regaining some ground after dipping to a one-month low of $1.2210 on Friday.

May robusta coffee was up $10, or 0.7%, at $1,366 a tonne.