LONDON: White sugar futures rose on Monday, boosted by tighter deliverable supplies despite a broader global glut, while cocoa slipped and arabica coffee steadied after sharply rebounding off 4-1/2 year lows last week.
SUGAR
* October white sugar was up $2.10, or 0.6 percent, at $333.40 a tonne by 1332 GMT.
* The August contract remained at a sizeable premium above $9 over the October position ahead of expiry next week.
* Spot prices have been supported by expectations of tight supplies of sugar that could meet necessary criteria to be tendered against the contract, despite a global glut.
* “(The) difficulty of finding deliverable breakbulk origins on London gives a kind of positive bias to London futures,” Marex Spectron said in a report.
* October raw sugar rose 0.07 cent, or 0.6 percent, to 11.58 cents per lb, partly supported by light chart-inspired buying.
* Focus was on upcoming cane crush data from Brazil’s Centre-South region, due out this week, with expectations for reduced sugar supplies.
* “In the Centre-South, the 2018/19 campaign continues to strongly focus on ethanol production,” the International Sugar Organization said in a monthly report.
* The market was also awaiting a delayed Commitment of Traders report for fresh indications on whether funds have resumed short-selling.
COCOA
* September London cocoa fell 14 pounds, or 0.8 percent, to 1,775 pounds a tonne, partly pressured by a stronger British pound.
* Dealers also said sentiment was subdued amid a lack of fundamental news, with thin speculative trading dominating activity.
* “People are waiting for clarity – they’re waiting to see how the new crop starts,” one European dealer said. “In the meantime, you get technical signals which are fanning the fire.”
* The July contract’s premium over September
* September New York cocoa slipped $19, or 0.8 percent, to $2,446 a tonne in tandem with London.
* Cocoa arrivals at ports in top grower Ivory Coast reached 1.787 million tonnes between Oct. 1 and July 8, exporters estimated on Monday.
* Ghana’s 2017/18 cocoa output could top 900,000 tonnes due to favourable weather and improved farming techniques, farmers said on Friday.
COFFEE
* September arabica coffee was unchanged at $1.1410 per lb.
* Prices were consolidating after sharply rebounding on Friday from 4-1/2 year lows.
* September robusta coffee rose $9, or 0.5 percent, to $1,671 a tonne, also steadying after a sharp rebound in the prior session.
Source: Brecorder
