Raw sugar extends recovery but upside capped, cocoa falls

LONDON: Raw sugar futures on ICE edged up on Thursday, extending a recovery from Tuesday's two-week lows, while cocoa prices fell as excess supplies continue to pressure the market.

SUGAR

October raw sugar edged up 0.2% to 16.96 cents per lb at 1050 GMT, having hit a two-week low of 16.73 cents on Tuesday.

Dealers said sugar's upside remains capped by a lack of physical demand, fund long liquidation and from scale down buying from commercial consumers.

The CEO of Suedzucker, Europe's largest sugar refiner, reaffirmed expectations of better full-year profit on hopes the economic impact of the COVID-19 pandemic will subside.

August white sugar rose 0.4% to $427 a tonne.

COCOA

September New York cocoa slipped 0.2% to $2,398 a tonne, having hit its highest in nearly a month on Monday.

London cocoa hits 1-1/2 month peak, raw sugar hits 2-week trough

Swiss chocolate maker Barry Callebaut said sales volume growth accelerated in the three months to May 31, with growth in the chocolate business jumping over 20%.

The group, which supplies chocolate and cocoa products to customers including Nestle, Mondelez and Hershey, said on-the-go consumption has recovered since many COVID-related lockdowns eased.

Still cocoa supplies remain ample following bumper harvests in top growers Ivory Coast and Ghana this season, capping cocoa prices.

North American cocoa grind data, a measure of demand, is expected later on Thursday.

September London cocoa fell 0.7% to 1,623 pounds per tonne, having hit its highest in 1-1/2 months on Tuesday.

COFFEE

September arabica coffee fell 0.6% to $1.5575 per lb, having hit its highest since early July earlier.

Arabica coffee hits 3-week high on Brazil frost fears

Arabica is gaining support from a strengthening in the Brazilian real versus the dollar, and from shipping bottlenecks that have delayed flows from top producers Brazil and Vietnam.

September robusta coffee fell 1% to $1,745 a tonne, having hit its highest in more than 2-1/2 years on Monday.

Coffee prices in top robusta producer Vietnam edged up this week due to tight supplies at the end of the season and shipping container bottlenecks, traders said.