LONDON: Raw sugar futures on ICE edged higher on Monday, boosted by a pick-up in demand in the physical market, while arabica coffee prices slipped slightly from the prior session’s two-month peak.
March raw sugar was up 0.15% at 20.09 cents per lb by 1151 GMT.
Pakistan’s state agency the Trading Corporation of Pakistan (TCP) has issued a new international tender to purchase 50,000 tonnes of white sugar, European traders said on Monday.
“The longer the market remains directionless, the greater the risk of a fund sell-off. But we think that the past two weeks have seen a momentous change – the apparent return of white sugar demand, and the substantial raw sugar demand in September,” broker Marex said in an note.
Speculators marginally raised a net long position in raw sugar futures on ICE in the week to Sept. 28, the US Commodity Futures Trading Commission said on Friday.
December white sugar fell 0.5% to $508.60 a tonne.
Raw sugar prices ease, focus on October expiry
December arabica coffee fell 0.8% to $2.0245 per lb after hitting a two-month high of $2.0555 on Friday.
Dealers said the market may consolidate in the short term after its recent run-up, but the overall mood remained bullish with disruptions to supply in the physical market increasing the appetite for exchange stocks.
Honduras is expected to export some 5.7 million 60-kg bags in the 2021-2022 coffee harvest, 2% less than was sold in the previous season, an official from the Honduran Coffee Institute (IHCAFE) said on Friday.
November robusta coffee was down 0.7% at $2,153 a tonne.
December New York cocoa rose 1.3% to $2,747 a tonne.
The market has been supported partly by concerns that heavy rainfall in top producer Ivory Coast could lead to problems with black pod disease.
December London cocoa was 1.2% higher at 1,905 pounds a tonne