LONDON: Raw sugar prices on ICE recovered on Thursday after hitting a one-month low as the dollar held strong and funds continued to steer clear of buying the sweetener, having pushed it to four-year highs in late February.
May raw sugar was 0.4% higher at 16.20 cents per lb at 1348 GMT, having hit a one-month low of 15.96.
Worries about lofty US bond yields hit global shares and boosted the dollar ahead of an address by Federal Reserve Chair Jerome Powell.
A strong dollar makes dollar-priced sugar costlier for non-US investors.
“There (is) no reason for prices to drop much with uncertainty over Brazilian production for next season, freight issues and possible lower production from India,” said a dealer.
He added end users still have lots of buying left to do.
May white sugar rose 0.8% to $461.60 a tonne.
May arabica coffee was down 0.2% at $1.3250 per lb, having fallen for the previous four sessions.
Arabica hit a one-year high last week, underpinned by the prospect of a smaller crop in top producer Brazil this year, but a sharp devaluation of Brazil’s real currency is leading to strong producer selling.
Colombia produced 1.1 million 60-kg bags of washed arabica coffee in February, up 11% from a year ago, data showed.
May robusta coffee fell 0.8% to $1,415 a tonne.
Coffee prices in top robusta producer Vietnam fell this week as farmers held back from selling amid low prices.
May London cocoa fell 0.6% to 1,804 pounds per tonne?, after touching a three-month high on Wednesday.
Cocoa has underperformed other commodities this year because of surplus market supplies, though it has staged a small recovery in recent weeks on hopes demand will improve as countries gain some control over the COVID-19 pandemic.
Dealers said speculators remain in buying mode for now and it would be unwise to bet against them near term.
May New York cocoa fell 1.1% to $2,627 a tonne.—Reuters
Comments
Comments are closed for this article.