LONDON: Raw sugar futures on ICE rose on Tuesday after hitting their lowest in nearly two months earlier in the session as traders remained risk averse due to the ongoing Russia-Ukraine conflict, but partial to buying sugar due to rising energy prices.
Higher energy prices can prompt cane mills in top producer Brazil to produce less sugar and more ethanol, a cane-based biofuel.
SUGAR
May raw sugar rose 1.4% to 17.94 cents per lb at 1135 GMT, having earlier hit its lowest since early January at 17.70.
Dealers said sugar should remain range bound near term, supported by strong energy prices but under pressure from jittery investors looking for safe haven assets due to the Russian-Ukraine conflict.
Russia’s assault on its neighbour, which Moscow says is a “special operation”, is the biggest state-to-state invasion in Europe since World War Two.
Egypt aims to import 300,000 tonnes of sugar in 2022, including 100,000 tonnes already purchased, supply minister Ali Moselhy said.
May white sugar rose 1.2% to $501.70 a tonne.
COCOA
May New York cocoa edged up 0.2% to $2,536 a tonne, having earlier hit a one-month low of $2,507 amid widespread investor risk aversion.
The International Cocoa Organization on Monday forecast there would be a global cocoa deficit of 181,000 tonnes in the 2021/22 season (October-September).
May London cocoa rose 0.3% to 1,695 pounds per tonne?, having earlier hit its lowest in nearly two months at 1.681.
COFFEE
May arabica coffee rose 1.5% to $2.3630 per lb, having slumped to a one month low on Monday.
Dealers said they expected arabica prices to stabilise this week as about 60-70% of the coffee consumed in world No. 4 coffee buyer Russia is robusta coffee.
May robusta coffee rose 0.7% to $2,104 a tonne, having closed down 4% on Monday.
Comments
Comments are closed.