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Wednesday, February 28, 2024

Raw sugar futures climb as crude oil gains

LONDON: Raw sugar futures rose on Monday supported by gains in crude oil and other commodities, although an improving outlook for production in India limited the upside potential.

SUGAR

May raw sugar rose 1.8% to 19.27 cents per lb by 1449 GMT.

Higher energy prices can prompt cane mills in Brazil to divert output from sugar to ethanol, a cane-based biofuel.

Broker Marex said in a weekly update that estimates for India’s sugar production had risen to about 34 million tonnes from 31 million during the past couple of weeks and there was potential for them to climb further.

May white sugar rose 2.5% to $549.60 a tonne.

COFFEE

May arabica coffee rose 1.5% to $2.2330 per lb.

Dealers said the market was regaining some ground after its recent sharp fall driven largely by liquidation of a long position.

Speculators cut their net long position in arabica coffee on ICE US in the week to March 15, data from the Commodity Futures Trading Commission showed on Friday.

May robusta coffee fell 0.1% to $2,164 a tonne.

Uganda’s coffee exports in February plunged 20% compared to the same period a year ago, the state-run sector regulator said on Saturday, attributing the decline to drought that cut yields in some parts of the country.

COCOA

May London cocoa fell 1.3% to 1,691 pounds a tonne as heavy rains improved the outlook for the mid-crop in top grower Ivory Coast.

The International Cocoa Organization (ICCO), in a report issued on Monday, said demand in both Russia and Ukraine was expected to be reduced by the current conflict.

The inter-governmental body said a weak rouble and sanctions could curb demand in Russia, while the conflict was affecting the safety of any economic activity in Ukraine.

May New York cocoa fell 0.7% to $2,519 a tonne.

Raw sugar futures climb as crude oil gains

Source: Brecorder

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