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Markets Print edition: 2021-08-25

Raw sugar prices rise

Published August 25, 2021 Updated August 25, 2021 04:43am
By

LONDON: Raw sugar futures on ICE rose on Tuesday, with the market's focus still on falling production in the key Centre-South region of Brazil, while coffee prices also climbed.

SUGAR

October raw sugar rose by 0.15 cents, or 0.8%, to 19.73 cents per lb by 1422 GMT.

Dealers continued efforts to determine the extent to which drought and recent frosts have driven down production in the Centre-South region of Brazil this season.

Industry group Unica said on Tuesday that frosts had caused damage to one million hectares of cane fields.

Sugar production in Centre-South Brazil totalled 2.99 million tonnes in the first half of August, down 7.5% from the same period last year, Unica said.

Lower production in Brazil has helped to swing the global market into deficit, according to the median forecast in a Reuters poll issued on Friday.

October white sugar rose by $1, or 0.2%, to $480.10 a tonne.

COFFEE

November robusta coffee was up $27, or 1.4%, at $1,939 a tonne after hitting a four-week high of $1,945.

Dealers said the market was supported by a pick-up in robusta demand, driven by the recent strength in arabica bean prices.

A shortage of shipping containers also remains a concern and looks set to continue to disrupt the flow of beans from top robusta producer Vietnam in the coming months.December arabica coffee was up 3.35 cents, or 1.8%, at $1.8520 per lb.

COCOA

December New York cocoa fell by $5, or 0.2%, to $2,549 a tonne.

December London cocoa was down 2 pounds, or 0.1%, at 1,774 pounds a tonne.

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