LONDON: Sugar, coffee and cocoa futures on ICE rose on Wednesday, underpinned by tight supplies and as global equities and oil recovered, though fears over the Omicron coronavirus variant kept gains in check.
SUGAR
March raw sugar was 1.8% higher at 19.05 cents per lb at 1544 GMT. The contract hit the weakest since Dec. 2 on Monday at 18.52 cents.
Dealers said the market is probably under-valued given the expected deficit this season, but added the Omicron story is far from over and could further hurt global growth and therefore, sugar demand.
Supply chain services company Czarnikow struck a more optimistic tone, noting speculators have been selling into consumer buying of late and now have room to add to their long position.
March white sugar rose 1.3% to $498.10 a tonne.
COFFEE
March arabica coffee rose 1.9% to $2.3250 per lb, regaining some ground for a second day after falling by 4.5% on Monday.
Dealers said prices are under pressure due to worries the surging Omicron cases will hurt demand, as will the U.S. Federal Reserve tightening monetary policy.
They added, however, arabica should find some support due to roaster buying.
March robusta coffee rose 0.8% to $2,335 a tonne.
COCOA
March London cocoa rose 0.4% to 1,696 pounds per tonne.
Cocoa arrivals at ports in top grower Ivory Coast are down between 12% and 13% from the same period last year and are likely to stay down for the rest of the season, the director general of the Coffee and Cocoa Council (CCC) said.
March New York cocoa rose 1.2% to $2,490 a tonne.
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