LONDON: Raw sugar futures rose to a four-week high on Friday boosted by a more bullish outlook on price charts following the recent run-up in prices, while arabica coffee prices also advanced.
SUGAR
October raw sugar was up 0.11 cent, or 1.0 percent, at 10.91 cents per lb at 1420 GMT after climbing to a four-week high of 11.00 cents.
Dealers said more constructive chart formations had prompted funds to scale back a large net short position.
The prospect of lower production in Brazil and the European Union had helped to support prices although there remained concern about global oversupply.
Brazil’s sugar exports are likely to fall 28.6 percent in 2018/19 from a year ago to 22 million tonnes as the South American country trims production of the sweetener to raise ethanol output, a senior industry official said.
Dealers said the scope for prices to rise significantly remained capped by potential exports from India. Stocks of sugar are piling up in India but prices are currently not high enough to incentivise exports.
October white sugar was down $0.40, or 0.1 percent, at $329.40 a tonne.
Dealers noted the front month had slipped to a small discount to December ahead of its expiry next Friday, indicating limited appetite to take delivery.
COFFEE
December arabica coffee was up 0.45 cents, or 0.4 percent, at $1.0265 per lb, edging further away from a 12-year low of 98.65 cents on Tuesday.
Dealers said a rebound in the currency of Brazil this week had helped the market regain some ground in the last couple of days, making exports less attractive in local currency terms in the world’s top grower.
A holiday in Brazil for Independence Day on Friday helped to curb activity.
November robusta coffee rose $5, or 0.3 percent, to $1,497 a tonne. The second month had slumped to a 2-1/2 year low of $1,465 on Tuesday.
Uganda’s coffee exports in July dropped 8 percent compared to same month last year, the state-run sector regulator Uganda Coffee Development Authority (UCDA) said in a report seen by Reuters on Friday.
COCOA
December New York cocoa was up $6, or 0.3 percent, at $2,287 a tonne.
Dealers said, however, the market was on track for a second consecutive weekly loss with main crop prospects in West Africa generally favourable.
December London cocoa rose 4 pounds, or 0.2 percent, to 1,656 pounds a tonne.
Source: Brecorder
