White sugar climbs on tighter spot supplies, arabica coffee steadies

09 Jul, 2018

SUGAR

* October white sugar was up $2.10, or 0.6 percent, at $333.40 a tonne by 1332 GMT.

* The August contract remained at a sizeable premium above $9 over the October position ahead of expiry next week.

* Spot prices have been supported by expectations of tight supplies of sugar that could meet necessary criteria to be tendered against the contract, despite a global glut.

* "(The) difficulty of finding deliverable breakbulk origins on London gives a kind of positive bias to London futures," Marex Spectron said in a report.

* October raw sugar rose 0.07 cent, or 0.6 percent, to 11.58 cents per lb, partly supported by light chart-inspired buying.

* Focus was on upcoming cane crush data from Brazil's Centre-South region, due out this week, with expectations for reduced sugar supplies.

* "In the Centre-South, the 2018/19 campaign continues to strongly focus on ethanol production," the International Sugar Organization said in a monthly report.

* The market was also awaiting a delayed Commitment of Traders report for fresh indications on whether funds have resumed short-selling.

COCOA

* September London cocoa fell 14 pounds, or 0.8 percent, to 1,775 pounds a tonne, partly pressured by a stronger British pound.

* Dealers also said sentiment was subdued amid a lack of fundamental news, with thin speculative trading dominating activity.

* "People are waiting for clarity - they're waiting to see how the new crop starts," one European dealer said. "In the meantime, you get technical signals which are fanning the fire."

* The July contract's premium over September <LCCN8-U8> retreated slightly from last week's levels but remained around 87 pounds.

* September New York cocoa slipped $19, or 0.8 percent, to $2,446 a tonne in tandem with London.

* Cocoa arrivals at ports in top grower Ivory Coast reached 1.787 million tonnes between Oct. 1 and July 8, exporters estimated on Monday.

* Ghana's 2017/18 cocoa output could top 900,000 tonnes due to favourable weather and improved farming techniques, farmers said on Friday.

COFFEE

* September arabica coffee was unchanged at $1.1410 per lb.

* Prices were consolidating after sharply rebounding on Friday from 4-1/2 year lows.

* September robusta coffee rose $9, or 0.5 percent, to $1,671 a tonne, also steadying after a sharp rebound in the prior session.

Copyright Reuters, 2018

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