LONDON: Raw sugar futures rose on Tuesday, recouping most of the prior session's losses as the market remained rangebound, while arabica coffee extended its rebound from a recent 13-year low.
SUGAR
* May raw sugar rose 0.12 cent, or 0.95 percent, to 12.69 cents per lb by 1115 GMT.
* Dealers said recent gains in crude oil prices had provided some support, although producer selling above 12.80 cents was helping keep a lid on the market.
* They continued to keep a close watch on an El Nino weather event, which is linked to dry weather across Asia Pacific and can curb sugar production in that region.
* "A strengthening El Nino could result in lower crops across southeast Asia. Thailand has actually been a little dry and the 2019/20 crop will likely not reach potential," Rabobank said in a market note.
"That same is to be said of crops in the Philippines and Indonesia and, of course, India," the report added.
* Monsoon rains in India are expected to be below normal this year, the country's only private weather forecasting agency said last week.
* May white sugar was up $1.90, or 0.6 percent, at $328.10 a tonne.
* France's farm ministry in its first estimate of the 2019 sugar beet area pegged sowings at 455,000 hectares, down 6.3 pct vs 2018.
COFFEE
* May arabica coffee was up 0.90 cent, or 1.0 percent, at 93.85 cents per lb, pulling further away from last week's 13-year low of 91.25 cents.
* Dealers said the market could climb further in the short term, boosted by technically-driven buying, but the scope for any sustained rebound appeared limited with supplies plentiful and exchange stock well above levels at the same time last year.
* The extra coffee in exchange stocks is primarily from Honduras.
* "The potential for more Honduran coffee turning up at the exchange still weighs heavily on the arabica market," Rabobank said.
* May robusta coffee was up $6, or 0.4 percent, at $1,432 a tonne.
COCOA
* May London cocoa fell 25 pounds, or 1.4 percent, to 1,770 pounds a tonne.
* Above average rainfall last week in most of Ivory Coast's cocoa regions should boost the April-September mid-crop but strong winds are worrying, farmers said on Monday, after weeks of dryness.
* May New York cocoa was down $38, or 1.6 percent, at $2,392 a tonne.
Comments
Comments are closed for this article.