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Wednesday, September 28, 2022

Raw sugar, coffee prices rise as dollar weakens

LONDON: Raw sugar prices rose on Monday, buoyed by broad-based gains in commodity markets partly due to a weaker dollar, while arabica coffee futures regained ground after sliding to a nine-month low last week.

The dollar fell after several Federal Reserve officials signalled they did not favour stepping up the rate hiking pace.

SUGAR

October raw sugar rose 1.3% to 19.51 cents per lb by 1406 GMT.

Dealers said the raw market was also deriving support from the recent strength in white sugar prices, which tend to react first to any pick-up in physical demand.

“White sugar is still on fire and has been like this for so long that it is probably telling us that real demand (consumption) is up,” broker Marex said in a market update.

October white sugar fell 0.2% to $558.30 a tonne, slipping back slightly after its recent strong advance.

COFFEE

September arabica coffee rose 6.6% to $2.1295 per lb, rebounding from a nine-month low of $1.9460 set on Friday.

Dealers said the market had become technically oversold after its recent sharp drop, while the current low level of exchange certified stocks also remained a supportive influence.

The recent bout of fund long liquidation also appears to have dried up.

September robusta coffee rose 3.4% to $1,988 a tonne.

COCOA

September New York cocoa rose 0.2% to $2,326 a tonne.

Dealers said North American second-quarter cocoa grind data, due to be issued on Thursday, would provide a short-term focus as they keep a close watch on whether global economic woes are beginning to impact consumption.

September London cocoa fell 0.5% to 1,712 pounds a tonne.

Rains were above average in most of Ivory Coast’s cocoa-growing regions last week, conditions that could prompt harvests for the upcoming October-to-March main crop to start early, farmers said on Monday.

Raw sugar, coffee prices rise as dollar weakens

Source: Brecorder

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