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  • Oct 5th, 2018
  • Comments Off on Raw sugar surges, arabica coffee advances
Raw sugar futures on ICE edged up on Thursday as the market consolidated just below the prior session's 3-1/2 month high while arabica coffee prices also rose. March raw sugar was up 0.01 cent, or 0.1 percent, at 12.24 cents per lb at 1401 GMT, holding just below the prior session's 3-1/2 month high of 12.38 cents.

Dealers said the short-term outlook appeared constructive as long as the market could close above 12 cents per lb with speculators scaling back a large net short position against the backdrop of a strengthening in the currency of top producer Brazil.

The Indian rupee plumbed record lows as global oil prices rose and stocks and bonds weakened on Thursday, heightening speculation that the central bank may hike interest rates on Friday more aggressively than previously expected.

"India's Rupee declining to new all-time lows is worth noting. When the market returns to weighing up India exports, the export parity price will now be lower," Commonwealth Bank of Australia analyst Tobin Gorey said.

December white sugar rose $2.30, or 0.7 percent, to $341 a tonne.

December arabica coffee rose 1.50 cents, or 1.4 percent, to $1.0810 per lb. The contract peaked on Wednesday at $1.1080, the highest level since August 9. Dealers said the run-up had been fuelled by speculative short covering triggered by more constructive price charts and the strengthening in the currency of top grower Brazil.

November robusta coffee rose $22, or 1.4 percent, to $1,610 a tonne. Global coffee prices recovered but markets were subdued in Vietnam and Indonesia due to low stocks in both the countries, traders said on Thursday. December New York cocoa fell $13, or 0.6 percent, to $2,006 a tonne. Dealers said the market remained in striking distance of Monday's low of $1,982, the weakest since January, and there could be a test of support around that level in the near future. December London cocoa rose 2 pounds, or 0.1 percent, to 1,500 pounds a tonne.

Copyright Reuters, 2018


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