LONDON: Raw sugar futures on ICE rose on Monday after India said it will restrict sugar exports for the first time in six years to prevent a surge in domestic prices, potentially capping this season’s exports at 10 million tonnes.
July raw sugar rose 0.5% to 19.87 cents per lb at 1259 GMT, having hit a one-month high of 20.24 cents last week.
Dealers said that while the India export cap had not come as a huge surprise, there were some in the market who had previously bet that the world’s No. 2 sugar exporter would ship more than 10 million tonnes this season.
They added, however, that sugar is well supplied overall, with prices having failed again to close above 20 cents on Monday as producers seemed keen to sell the sweetener above the 20.10 cent level.
August white sugar rose 1.1% to $558.20 a tonne.
July arabica coffee fell 1.3% to $2.1325 per lb, having hit its lowest since mid-May at $2.1250.
Dealers said fears over frost risk in top producer Brazil have subsided for now, putting arabica under renewed pressure from worries that the Russia-Ukraine war and soaring inflation will crimp global growth and with it, coffee demand.
July robusta coffee fell 0.4% to $2,033 a tonne.
July New York cocoa fell 0.5% to $2,439 a tonne, having hit its lowest level since early November at $2,404 on Friday.
September London cocoa edged up 0.1%, to 1,748 pounds per tonne.