Raw sugar gains on optimism over global growth
- July raw sugar rose 2.1% to 17.34 cents per lb.
- July arabica coffee rose 4.3% to $1.5195 per lb, heading back near a four-year high of 1.5540 hit in early May.
LONDON: Raw sugar futures on ICE rose on Tuesday amid upbeat sentiment in wider financial markets as investors overlooked rising COVID-19 cases in Asia to focus on bets that US interest rates will remain low.
SUGAR
July raw sugar rose 2.1% to 17.34 cents per lb at 1511 GMT, having fallen sharply late last week.
Traders said that while concerns over Brazil's crop persist, worries are creeping in about falling consumption, especially in COVID-struck India.
They said, however, that with a more positive macroeconomic environment for now, prices will likely try to consolidate above 17 cents.
August white sugar rose 1.6% to $460.30 a tonne.
COFFEE
July arabica coffee rose 4.3% to $1.5195 per lb, heading back near a four-year high of 1.5540 hit in early May.
Brazil's real strengthened versus the dollar, deterring exporters from selling dollar-priced coffee by lower returns in local currency terms.
Arabica is also being underpinned by shrinking output in Brazil this season.
Green coffee stocks stored at US ports rose at the end of April for the first time in four months, increasing by 83,405 60 kg bags to 5.76 million bags.
July robusta coffee rose 3.2% to $1,505 a tonne.
COCOA
July New York cocoa fell 1.4% to $2,503 a tonne, having hit $2,552 on Monday, the highest since March 18.
Excess supplies remain a concern in cocoa, with a wide surplus forecast for this season.
July London cocoa dipped 1.3% to 1,688 pounds per tonne.
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