LONDON: Raw sugar futures on ICE steadied on Tuesday, underpinned by near term supply tightness and somewhat reduced concerns about inflation in the wider financial markets.
Arabica coffee rose again, even after surging more than 5% on Monday.
Sugar
March raw sugar had edged up 0.05% to 19.39 cents per lb by 12.15 GMT, having slid 1.1% on Monday.
Dealers said the market remains underpinned overall by near term supply tightness and an overall reluctance by funds to liquidate their long positions.
On the downside however, there remains some pressure from data out on Monday showing top producer Brazil’s sugar production in the second half of November was up six-fold versus a year ago.
Elsewhere, France’s farm ministry estimated sugar beet output fell 8.2% this year versus last.
March white sugar rose 0.5% to $536.50 a tonne.
Coffee
March arabica coffee rose 0.2% to $1.6735 per lb, after surging 5.6% on Monday.
Dealers said there remain concerns about the outlook for the coffee crop next year in top producer Brazil.
Data showed Brazilian coffee exports jumped 19% year-on-year in November amid improved shipping conditions.
March robusta coffee fell 0.4% to $1,876 a tonne.
Cocoa
March New York cocoa rose 0.4% to $2,511 a tonne.
Rainfall was below average last week in most of top producer Ivory Coast’s cocoa-growing regions but soil moisture remained adequate for the development of the cocoa mid-crop.
Cocoa arrivals at ports in Ivory Coast reached 954,000 tonnes by Dec. 11 since the season start on Oct. 1, up 10% year-on-year.
March London cocoa rose 0.5% to 1,941 pounds per tonne.
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