12.7 C
New York
Saturday, October 23, 2021

Raw sugar hits 4-1/2-year high as energy prices soar

LONDON: Raw sugar futures on ICE hit a 4-1/2-year high on Monday as energy prices continued to soar, with a move by Brazil’s Petrobras to hike ethanol fuel prices by nearly 7% last week still boosting sentiment.

Rising energy prices prompt cane mills in Brazil to raise output of the cane-based biofuel ethanol at the expense of sugar.

Sugar

March raw sugar rose 0.7% to 20.44 cents per lb at 1119 GMT, having earlier hit 20.50, its highest since late February 2017.

US crude oil futures hit seven-year highs earlier as an energy crisis gripping major economies showed no sign of easing.

Alvean Sugar, the world’s largest trader of the sweetener, believes demand will pick up in the coming months despite current high costs as consuming countries have used most of their available stocks.

“The (sugar) market is tight but sufficiently supplied for the coming year, but after that it looks like being in deficit – and extreme deficit if we suffer any more weather surprises,” said broker Marex Spectron.

Sugar speculators cut their net long position by 452 contracts to 162,845 in the week to Oct. 5, CFTC data showed.

December white sugar rose 0.6% to $522.60 a tonne.

Raw sugar prices ease, focus on October expiry

Coffee

December arabica coffee fell 1.4% to $1.984 per lb, having closed up 1.7% on Friday.

Coffee speculators raised their net long position by 2,428 contracts to 43,940 in the week to Oct. 5.

ICE arabica coffee stocks are at their lowest since early May at 1.94 million bags, having dropped sharply from 2.16 million bags as recently as mid-September, indicating strong demand or limited supply, or both.

November robusta coffee fell 1.4% to $2,087 a tonne.

Cocoa

December New York cocoa fell 0.5% to $2,736 a tonne, having hit a 10-month peak of $2,792 last week.

December London cocoa fell 0.2% to 1,882 pounds per tonne.

Cocoa arrivals at ports in world’s top grower Ivory Coast reached 85,000 tonnes between Oct. 1 and Oct. 10, exporters estimated, down 19.8% year-on-year.

Cocoa speculators switched to a net long position of 10,784 contracts in the week to October 5, adding 13,877 contracts.

Raw sugar hits 4-1/2-year high as energy prices soar

Source: Brecorder

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

10,835FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles