LONDON: White sugar futures on ICE hit 2-1/2-month highs on Monday in holiday-thinned trade with US markets closed for Labour Day, while robusta coffee futures slipped further away from last week’s highest level in more than two months.
SUGAR
White sugar rose 1.9 percent to close at USD502.10 a metric ton, having hit its highest since mid-May at USD503.90. Dealers said the market remains focused on output from top sugar producer Brazil. Brazil data last week showed that, while south-central sugar output rose 16percent in the first half of August, total recoverable sugars (TRS) per kilogram remained below historic levels, so 55percent of the cane went towards producing sugar rather than ethanol.
COFFEE
Robusta coffee futures fell 3.9percent to end at USD4,628 a ton, having gained 45percent in August. Dealers said the market had become technically overbought after its recent strong advance for a short-term correction to be expected but the overall mood remained bullish. Coffee remains supported by the US move to impose a 50percent tariff on imports from top coffee grower Brazil, which has virtually halted bean trade between the two countries and prompted a raid on stocks.
COCOA
London cocoa fell 0.5 percent to settle at 5,278 pounds per ton, having lost 4percent in August. Cocoa prices are under pressure from the new crop in Ghana and Cameroon, forecasts for rains in top grower Ivory Coast and increased US certified stocks.