LONDON: White sugar futures on ICE turned higher on Tuesday after earlier falling to the lowest level in more than two years as a global supply glut kept the market on the defensive.
SUGAR
March white sugar was up $1.10, or 0.3 percent, at $354 per tonne at 1345 GMT, after earlier dipping to a low of $351.20, the weakest for the front month since September 2015.
Dealers said a weaker dollar and strong crude oil prices helped the market climb off the lows, although producer selling is likely to limit the scope for any rebound.
“I think they (producers) will be capping any rally,” one dealer said, noting the ceiling for prices was now around $360 to $365 on whites and 13.50 to 13.75 cents per lb on raws.
March raw sugar was up 0.08 cents, or 0.6 percent, at 13.25 cents per lb.
China brought in 2.29 million tonnes of the sweetener in 2017, down 25.2 percent from the year before and the lowest since 2010, data showed on Tuesday.
COCOA
March London cocoa rose 3 pounds, or 0.2 percent, to 1,373 pounds a tonne.
Dealers said there continued to be tentative signs that demand is picking up with the fourth quarter Asia grind rising 4.2 percent, year-on-year, and the European grind climbing by 4.4 percent.
They were awaiting sales data from chocolate maker Barry Callebaut, expected to be issued on Wednesday, for further indications on demand trends.
March New York cocoa was up $10, or 0.6 percent, at $1,950 a tonne
COFFEE
March robusta coffee was off $12, or 0.7 percent, at $1,755 a tonne.
“A break of resistance (at $1,767) in today’s session would set the stage for a challenge of 1,800. This level has held firm last week and to renew bullish sentiment, prices need to close above this level,” said Sucden Financial technical analyst Geordie Wilkes in a market note.
Wilkes saw support at $1,740 and $1,730.
March arabica coffee was down 1.15 cents, or 0.9 percent, at $1.2140 per lb.
Source: Brecorder.com
