NEW YORK/LONDON: Raw sugar futures on ICE closed up on Wednesday as frosts hit some sugarcane growing regions in Brazil, adding to concerns about the crop in the world’s top producer whose development has already been hurt by dry weather.
October raw sugar settled up 0.35 cent, or 2.0%, at 17.89 cents per lb.
Frosts hit sugarcane growing regions in Sao Paulo, southern Mato Grosso do Sul and northern Parana, according to analysts and weather services, which could potentially further damage the crop that has already suffered with excessive dryness.
“However, it takes a few days to assess the effect on the sugarcane fields and to be able to estimate the damage,” said trader Czarnikow in a note. The forecast is for more frosts on Thursday.
The delivery against the July contract that expired on Wednesday totalled only 2,587 lots, or 131,427 tonnes, the smallest for the July position since 2014.
August white sugar rose $15.30, or 3.5%, at $447.70 a tonne.
September arabica coffee settled down 0.45 cent, or 0.3%, at $1.5975 per lb, slipping back slightly after climbing to a three-week high of $1.64 on Tuesday.
Dealers were trying to assess how much damage may have been done by frosts in Brazil.
Brazil-based brokers think most of the coffee will be spared from damages, since the cold air mass will be weaker when it reaches the main producing areas in Minas Gerais state.
“From Mogiana (coffee area in Sao Paulo state) northwards it seems that there is no risk or minor risk of frost,” said exporter Comexim in a note.
September robusta coffee settled up $30, or 1.8%, at $1,705 a tonne.
September New York cocoa settled down $1 to $2,389 a tonne.
North America cocoa grind report for the second quarter, a gauge of demand, will be released on July 15.
September London cocoa rose 10 pounds, or 0.6%, to 1,634 pounds per tonne.
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