Raw sugar prices edge up, cocoa and coffee weaken

LONDON: Raw sugar futures on ICE edged up on Monday, underpinned by the prospect of a slow start to the harvest in the key Centre-South region of Brazil, while cocoa and coffee prices were weaker.

SUGAR

May raw sugar rose by 0.03 cents, or 0.2%, to 15.79 cents per lb at 1215 GMT.

Dealers noted the outlook on price charts had become more constructive after the market found support at 15.55 cents on Friday, a level that also provided support in early February.

Overall weakness in commodity markets should, however, limit the scope of any recovery in prices after its recent fall which has seen funds reduce a net long position.

Dealers were keeping a close watch on the outlook for production in the key Centre-South region of Brazil where a slow start to the harvest is expected.

"Worries about that crop remain, or are even growing, as the forecast rainfall has once again disappointed," broker Marex Spectron said in a report, also noting concern about competition from soybeans for transport to ports in Brazil.

May white sugar rose by $1.50, or 0.3%, to $454.90 a tonne.

COCOA

May London cocoa fell by 13 pounds, or 0.75%, to 1,723 pounds a tonne.

Dealers said broad-based weakness in commodity markets and concerns that demand in Europe could be curbed as another wave of the COVID-19 pandemic hits the continent contributed to weakness in prices.

Cocoa arrivals at ports in top grower Ivory Coast reached 1.622 million tonnes by March 21 since the start of the season on Oct. 1, exporters estimated on Monday, down 0.1% from 1.623 million tonnes over the same period last season.

May New York cocoa fell by $13, or 0.5%, to $2,480 a tonne.

COFFEE

May arabica coffee fell by 0.65 cents, or 0.5%, to $1.2835 per lb.

May robusta coffee fell by $3, or 0.2%, to $1,377 a tonne.