Raw sugar sets 4-1/2 year peak; cocoa also climbs

LONDON: Raw sugar futures rose to a 4-1/2 year high on Tuesday before a bout of profit-taking largely erased gains while London cocoa prices edged up towards the previous session's five-month peak.

SUGAR

October raw sugar was up 0.01 cents, or 0.05%, at 20.04 cents per lb by 1424 GMT after touching a 4-1/2 year peak of 20.37 cents.

Dealers said the market had become technically overbought after the recent run-up and had run into some profit-taking.

Funds had been buying against the backdrop of a diminished outlook for production in Brazil, though India is expected to step up sales at the beginning of the next marketing season on Oct. 1.

The recent run-up in prices, however, means India is expected to withdraw export subsidies.

October white sugar rose by $3, or 0.6%, to $499.30 a tonne.

Raw sugar hits highest in more than 4 years

COCOA

December London cocoa was up 6 pounds, or 0.3%, at 1,797 pounds a tonne, edging towards Monday's five-month high of 1,804 pounds.

Dealers said the market was supported by a rebound in demand linked to the lifting of coronavirus-related restrictions in some countries, though a rise in production in Ivory Coast and Ghana in the 2020/21 season has kept the market well supplied.

December New York cocoa rose by $8, or 0.3%, to $2,615 a tonne.

Ghana's graded and sealed cocoa arrivals up 33.4% yr/yr: COCOBOD

COFFEE

December arabica coffee fell by 2.95 cents, or 1.6%, to $1.8330 per lb.

The market has derived support from concerns that recent frost will curb production in Brazil next season, though short-term supplies appear ample.

The amount of green coffee stored at US ports rose by nearly 300,000 bags by the end of July from the end of June, climbing above 6 million bags for the first time since October, the Green Coffee Association (GCA) said on Monday.

November robusta coffee fell by $4, or 0.2%, to $1,849 a tonne.