LONDON: Raw sugar futures on ICE rose on Tuesday, recovering from Monday’s two-month lows, while arabica coffee hit its lowest in 1-1/2 months.
SUGAR: March raw sugar ?rose 1.1% to 19.38 cents per lb at 1506 GMT, after touching 18.92 cents on Monday.
Dealers said the recent fund long liquidation has dried up and sugar looks set to consolidate around current levels provided the largely negative macro economic signals do not worsen.
In the background, Brazil’s decision not to reinstate federal taxes on gasoline continues to weigh, as it could encourage more use of cane to produce sugar rather than ethanol.
Dealers are also monitoring political unrest in Brazil after supporters of the country’s former president Jair Bolsonaro stormed the capital over the weekend.
March white sugar rose 1.7% to $544.40 a tonne.
COFFEE: March arabica coffee fell 2.6% to $1.5380 per lb, having hit a low of $1.5355.
Favourable weather in top producer Brazil and rising exchange stocks are weighing on arabica.