LONDON: White sugar futures on ICE rose on Tuesday after closing up 4% in the prior session as traders look to lock in supply ahead of the contract expiry on Wednesday.
Raw sugar futures also gained, while coffee and cocoa were little changed.
October white sugar, which expires on Wednesday, rose ?1.5% to $491.80 a tonne, extending Monday’s gains as some in the market position to receive sugar at expiry.
“An expiry squeeze can also be viewed as the trade seeing signs of more demand than are currently obvious in carry spreads and refining premiums,” said Commonwealth Bank of Australia.
“The market needs that support because waning momentum is likely to precipitate more momentum selling. And investors still have plenty to sell. Whether that urgency to buy continues though is an open question,” it added.
October raw sugar rose 0.3% to 19.04 cents per lb, having hit its lowest since early August at 18.57 cents on Monday.
France, the European Union’s biggest sugar producer, is expected to harvest 33.12 million tonnes of sugar beet this year, up 26.4% from 2020, the farm ministry said.
December arabica coffee fell 1.3% to $1.8435 per lb.
Arabica has been slowly slipping since soaring above $2 per lb in late July to its highest in nearly seven years following freak frosts in top producer Brazil.
Brazil green coffee exports fell 27% in August from a year earlier due to shipping container and vessel space shortages, industry group Cecafe said.
November robusta coffee fell 0.3% to $2,051 a tonne.
Top robusta producer Vietnam’s coffee exports in August were down 8.7% from July, customs data showed. For the first eight months of 2021, Vietnam’s coffee exports fell 6.4% year-on-year.
December New York cocoa edged up 0.1% to $2,639 a tonne.
December London cocoa edged down 0.2% to 1,785 pounds per tonne?.
High soil moisture in top producer Ivory Coast is expected to help the development of the October-to-March main crop, farmers said.