Home »Agriculture and Allied » World » Sugar edges lower ahead of expiry, coffee climbs
Raw sugar futures edged lower on Wednesday, with the front month's discount narrowing as funds continued to roll a large net short position out of October into March. Arabica coffee prices rose, aided by a strengthening in the currency of top producer Brazil.

October raw sugar settled down 0.18 cent, or 1.61%, at 11.01 cents per lb.

The October raws contract expires at the end of this month.

October white sugar settled down $1.20, or 0.3%, at $303.20 per tonne, with the nearby discount also narrowing in the run-up to its expiry late next week.

Dealers said nearby supplies remained ample, despite the slight tightening in spreads, and large deliveries continued to be expected against October raws and whites contracts.

"What has firmed up is the structure in both markets giving the appearance of renewed strength, or at least a reluctance to add to shorts," said Nick Penney, senior trader with Sucden Financial.

December arabica settled up 1.05 cent, or 1.1%, at 96.60 cents per lb as the market pulled further away from a five-month low of 93.40 cents set on Aug. 20. Colombia produced 1.1 million 60-kg bags of washed arabica coffee in August, down 11% from the same month a year earlier, the national coffee federation said on Tuesday.

November robusta coffee settled up $6, or 0.46%, at $1,310 per tonne.

December New York cocoa settled up $24, or 1.07%, at $2,269 per tonne.

Dealers said the market continued to regain some ground after falling sharply from mid-July to mid-August as the focus remained on the prospects for the main crop in Ivory Coast.

A large crop is expected, although rains had led to some concerns about bean quality. December London cocoa settled up 17 pounds, or 0.97%, at 1,764 pounds per tonne.

Copyright Reuters, 2019


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