NEW YORK/LONDON: White sugar futures on ICE rose to a one-month peak on Wednesday, while the October premium over raws surged to a new high, as the prospect of lower European production curbed appetites to deliver against the spot contract.
SUGAR
October white sugar settled up $4.40, or 1.4 percent, at $321.60 per tonne, after climbing to a one-month high of $329.60.
This lifted the October white sugar premium over October raw sugar to around $93, the highest for the contract.
Weather-related problems with the European Union crop this year has helped tighten available supplies that could be tendered against the October contract, which expires on Sept. 14.
This prompted short-covering, traders said.
"Should there be issues with the new harvest in the autumn, any stocks become valuable and as a result are unlikely to appear in the world market," Sucden Financial senior trader Nick Penney said in a market note.
This sentiment came after logistical challenges with tenders of EU sugar against the August whites contract, which had also lessened appetite to tender supplies against October, dealers said.
October raw sugar settled up 0.06 cent, or 0.6 percent, at 10.37 cents per lb, after trading within the prior session's range.
COFFEE
December arabica coffee settled down 0.15 cent, or 0.2 percent, at $1.029 per lb.
It remained within sight of last week's 12-year low of 99.3 cents, which is below the cost of production in most countries, as pressure from the weak currency in top grower Brazil continued to keep a lid on prices, dealers said.
In response to this, the Colombian government said late Tuesday it will place $34 million (100 billion pesos) in a fund to help coffee farmers.
November robusta coffee settled up $10, or 0.7 percent, at $1,546 per tonne, after falling to $1,525, the lowest for the second position-contract since April 2016.
COCOA
December New York cocoa settled up $29, or 1.3 percent, at $2,349 per tonne.
Prices were lifted by the firm British sterling, which rallied against the US dollar and pressured London cocoa prices, traders said.
Cocoa firms operating in Cameroon have moved staff out of the Anglophone region of the country and farmers are abandoning their crops in the area, as violence between separatists and security forces intensifies, exporters and farmers told Reuters.
December London cocoa settled down 5 pounds, or 0.3 percent, at 1,701 pounds per tonne.
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