Markets

Raw sugar, arabica coffee prices jump more than 3 percent

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Cocoa futures eased.

SUGAR

October raw sugar settled up 0.33 cent, or 2.37 percent, at 14.23 cents per lb after jumping 3.2 percent to a session high of 14.34 cents per lb.

The Brazilian real advanced against the greenback, with greater gains later in the session. The currency's gains support prices of dollar-traded commodities like sugar and coffee, as it reduced exporters' incentive to sell.

Benchmark prices were up in early trade. Prices were recovering after Tuesday's steep losses, when a rise to key levels around 14 cents per lb triggered buy-stops, said Nick Gentile, managing partner of commodity trading advisor NickJen Capital.

Prices recovered as traders digested Tuesday's news that Brazil had suspended a fuel tax increase.

October white sugar settled up $7.20, or 1.88 percent, at $389.20 per tonne.

COFFEE

The front-month September arabica coffee closed up 4.2 cents, or 3.22 percent, at $1.348 per lb after surging in late trade.

September robusta coffee settled up $43, or 2.05 percent, at $2,143 per tonne after reaching a session high of $2,145.

"The last two sessions, the market got oversold and we're just seeing some correction now," said Boyd Cruel, softs analyst for Vision Financial Markets in Chicago.

Berry borer beetle damages to the crop in Brazil, the world's top arabica coffee producer, underpinned prices, traders said. Reuters this week reported that farmers there are grappling with the worst infestation in recent memory.

COCOA

September New York cocoa settled down $14, or 0.73 percent, at $1,912 per tonne after slipping to a one-week low of $1,900.

Dealers said the market's recent rally appeared to have run out of steam amid sluggish demand and a large global surplus in the current 2016-17 season.

Traders shrugged off the unrest in Ivory Coast, the world's top producer as well as adverse crop weather Ivory Coast expected to curb production next season.

September London cocoa settled down 15 pounds, or 0.99 percent, at 1,506 pounds per tonne.

 

 

Copyright Reuters, 2017