Raw sugar hits three-week high as inflation fears subside
- May raw sugar rose 1.8% to 15.71 cents per lb
- May white sugar, which expires on Thursday, rose 1.8% to $432 a tonne.
- May arabica coffee rose 0.6% to $1.3080 per lb, having hit its highest since mid-March on Tuesday.
LONDON: Raw sugar futures on ICE hit a three-week high on Wednesday amid upbeat sentiment in the wider financial markets after data showed that US inflation is not rising as fast as feared as the economy reopens.
SUGAR
May raw sugar rose 1.8% to 15.71 cents per lb at 1015 GMT.
Dealers said sugar is likely to push higher today with the positive macroeconomic picture and continuing uncertainty over Brazilian production for the season.
May white sugar, which expires on Thursday, rose 1.8% to $432 a tonne.
The lowest price offered in an international tender to buy 50,000 tonnes of white sugar by Pakistan's state trading agency is believed to be $520.20 tonne c&f, European traders said.
COFFEE
May arabica coffee rose 0.6% to $1.3080 per lb, having hit its highest since mid-March on Tuesday.
Dealers said coffee is being underpinned by an expected deficit in an off-year in top producer Brazil's biennial production cycle.
Brazil exported 3.06 million 60kg bags of green coffee in March, down 2.7% from the same month last year, exporter association Cecafe said.
May robusta coffee rose 0.8% to $1,355 a tonne.
COCOA
May London cocoa fell 0.8% to 1,600 pounds a tonne.
The May contract continues to trade at a discount to July, indicating weak demand and ample supply.
Europe's first-quarter cocoa grind, a measure of demand, fell 3% from a year earlier to 357,815 tonnes, the Brussels-based European Cocoa Association said on Wednesday.
Germany's first-quarter cocoa grind fell 8.1% on the year to 91,482 tonnes, the BDSI German confectionery industry association said.
May New York cocoa edged up 0.2% to $2,413 a tonne.
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