LONDON: Raw sugar futures on ICE hit a fresh one-month high on Monday as adverse weather kept investors worried about supplies, while cocoa and arabica coffee also gained.
SUGAR
October raw sugar rose 0.6% to 25.15 cents per lb at 0931 GMT, having hit its highest since June 22 at 25.16.
Dealers said physical supplies were tight currently, plus concerns remain about the Indian monsoon, Brazilian production being curtailed by early rains and heat waves across southern Europe.
Funds added 3,879 contracts to their net long position in raw sugar, taking it to 89,314 lots in the week to July 18, data showed.
October white sugar rose 0.2% to $703 a metric ton.
COCOA
September New York cocoa rose 0.2% to $3,420 a metric ton, consolidating just below a 12-year peak of $3,439 set last week.
Funds raised their net long position in cocoa futures by 1,991 lots to 49,557 in the week to July 18, data showed.
Rabobank said cocoa prices could stay elevated well into 2024.
“The major production regions have had very wet conditions and flooding, which has been causing rotting and disease,” said RaboResearch associate analyst Pia Piggott.
She also cited reduced use of fertiliser and supply risks going forward due to the El Nino weather phenomenon.
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