LONDON: Raw sugar futures fell to the lowest level in more than two years on Monday as rising production in Asia added to concerns about oversupply.
SUGAR
May raw sugar fell 0.10 cents, or 0.8 percent, to 12.55 cents per lb by 1228 GMT after dipping to a low of 12.50 cents, the weakest for the front month since February 2016.
Dealers said funds were continuing to build a large net short position against the backdrop of rising production in Asia, particularly India, Pakistan and Thailand.
"Poor sugar. No sooner had it got used to the fact that the Indian crop was going to be a couple of million tons bigger than anyone thought, coming on top of the monster Pakistan crop, than the Thai crop began to grow like a magic beanstalk," broker Marex said in a report on Monday.
Speculators raised their bearish stance in raw sugar on ICE Futures US in the week to March 13, US Commodity Futures Trading Commission data showed on Friday.
May white sugar was down $1.10, or 0.3 percent, at $347.20 a tonne.
Brazilian mills are doing everything they can to keep raw sugar off the global market as Brazil's cane harvest kicks off, to avoid worsening a glut that has driven prices to their lowest in two years.
COFFEE
May robusta coffee was up $9, or 0.5 percent, at $1,754 a tonne after testing support around the 40-day moving average of $1,760.
"A close back above this level may set the scene for re-test of $1,790 in the coming days," Sucden Financial technical analyst Geordie Wilkes said in a market update.
May arabica coffee was up 0.55 cents, or 0.2 percent, at $1.1830 per lb, edging away from Friday's nine-month low of $1.1690.
The number of Americans drinking a daily cup of coffee is at the highest level since 2012, with demand continuing to get a boost from at-home consumption and gourmet drinks, an industry study showed on Saturday.
COCOA
May New York cocoa rose $34, or 1.35 percent, to $2,556 a tonne.
Dealers said the market's recent run-up had been driven partly by diminished crop outlooks in Ivory Coast and Ghana.
Cocoa arrivals at ports in top grower Ivory Coast reached about 1.331 million tonnes between Oct. 1 and March 18, down more than 5 percent from 1.408 million tonnes in the same period last season, exporters estimated on Monday.
May London cocoa rose 5 pounds, or 0.3 percent, to 1,801 pounds a tonne with gains curbed by the strength of the pound.
Comments
Comments are closed for this article.