London cocoa hits fresh six-month high
- October white sugar edged up 0.1% to $485.70 a tonne
- November robusta coffee rose 0.3% to $2,065 a tonne, having set a four-year high of $2,092 last week
LONDON: London cocoa futures on ICE hit fresh six-month highs on Monday with technical signals indicating supply is expected to tighten, while robusta coffee edged up.
US markets were closed for a public holiday.
Cocoa
December London cocoa rose 0.7% to 1,814 pounds per tonne at 1134 GMT, having scaled its highest since early March at 1,818.
The premium for December cocoa over March is near its highest since mid-March, with many expecting supplies to tighten in the October-September 2021/22 season.
December New York cocoa closed up 1.6% at $2,654 a tonne on Friday, having gained 3% on the week.
Speculators reduced their net long position in New York cocoa by 5,201 contracts to 1,724 in the week to Aug. 31.
London cocoa hits three week low amid excess supplies
Coffee
November robusta coffee rose 0.3% to $2,065 a tonne, having set a four-year high of $2,092 last week.
Robusta is gaining support from substitution demand following a recent rally in arabica, plus there is a coronavirus lockdown and shipping delays in top producer Vietnam.
December arabica coffee closed down 0.7% at $1.93 per lb on Friday, having gained 0.4% on the week.
Speculators raised their net long position in arabica coffee futures on ICE US in the week to Aug. 31 futures by 3,176 contracts to 30,644.
Rabobank said dry and hot weather in top arabica producer Brazil could mean a critical delay to coffee crop flowering.
Sugar
October white sugar edged up 0.1% to $485.70 a tonne.
Germany's refined sugar production from beets in the new 2021/22 season is forecast to rise to some 4.38 million tonnes from 4.10 million tonnes.
October raw sugar closed down 1.4% on Friday at 19.62 cents per lb, having lost 2% on the week.
Speculators reduced their net long position in ICE raw sugar by 7,262 contracts to 191,937.
Marex Spectron said raw sugar, which scaled 4-1/2 year highs last month, is seen ending the year on a relatively bearish note due low demand for whites and raws.
The broker sees the longer term picture as more bullish however due to falling output in top producer Brazil.
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