LONDON: Raw sugar futures on ICE hit a one-month low on Monday as signs of weak demand persisted and funds continued to liquidate long positions.
SUGAR
October raw sugar fell 0.5% to 18.70 cents per lb by 1423 GMT, having hit its lowest since early August at 18.57 cents.
ICE raw sugar speculators cut their net long position by 2,466 contracts to 189,471 in the week to Sept 7.
“It looks as if (sugar) demand has gone down even faster than supply, so even after losing 6.5-7.0 million tonnes of supply in CS Brazil, we are still going to end the year with a surplus,” broker Marex Spectron said in a note.
It added, however, that sugar is bullish longer term because of the probability of a poor cane crop from Brazil next year and adverse weather elsewhere, coupled with a possible increase in demand as the world emerges from the COVID-19 pandemic.
October white sugar, which expires on Wednesday, rose ?1.5% to $471.50 a tonne.
Pakistan has issued an international tender to purchase 200,000 tonnes of white sugar, European traders said.
COFFEE
December arabica coffee was flat at $1.8810 per lb, having hit its lowest since late August at $1.8375 on Thursday.
ICE arabica coffee speculators raised their net long position by 2,690 contracts to 36,511 in the week to Sept 7.
November robusta coffee rose 0.3% to $2,055 a tonne.
No damage has been reported so far from Tropical Storm Conson in the main coffee region of top robusta producer Vietnam.
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