Raw sugar steadies after hitting near four-year peak last week

LONDON: Raw sugar futures on ICE steadied on Monday after climbing to the highest level in nearly four years at the end of last week amid tightening short-term supplies.

SUGAR

March raw sugar fell 0.3% to 17.74 cents per lb at 1137 GMT, after peaking on Friday at 17.96 cents and marking a weekly gain of 7.5%.

Speculators increased their net long position in ICE raw sugar in the week to Feb. 16 by 5,068 contracts to 144,718 contracts, data showed.

"Producers are over-hedged, while the trade are scared of selling because they do not understand what is going on. The only sellers are the funds - and profit-taking is not part of their DNA," said Marex Spectron in a note.

Keeping sugar supplies tight are limited Indian exports due to a global shipping container shortage, and a poor Thai crop. There is also talk Brazil's harvest may start a bit late.

The run-up in crude oil futures this month has also been supportive for sugar.

May white sugar fell 0.9% to $477.20 per tonne, having hit a contract high on Friday.

COFFEE

May arabica coffee fell 0.4% to $1.2860 per lb, having hit a one-month peak last week and marked a 5% weekly gain.

Dealers said coffee is being boosted by worries over Brazil's upcoming crop, and by global inflation expectations.

Speculators slightly reduced their net long position in arabica coffee by 299 contracts in the week to Feb. 16 to 19,454 contracts.

May robusta coffee rose 0.4% to $1,375 a tonne.

COCOA

May London cocoa rose 1.1% to 1,808 pounds per tonne after dipping to a more than one month low last week.

Speculators cut their long position in New York cocoa by 3,511 contracts to only 3,399 contracts in the week to Feb. 16.

Cocoa arrivals at ports in top grower Ivory Coast totalled 1.491 million tonnes between Oct. 1 and Feb. 21, exporters estimated, down 1.3% from the same period last season.

May New York cocoa rose 1% to $2,467 a tonne.