NEW YORK: Sugar futures on ICE rallied on Friday as investors’ fears over potential surplus supplies flooding the export market faded somewhat, while arabica coffee steadied after hitting a record high in the prior session.
Raw sugar settled up 0.33 cent, or 1.8%, at 19.02 cents per lb, having hit a five-month low on Tuesday. White sugar rose 2.3% to $498.20 a metric ton.
Easing fears over surplus supplies, traders in India are struggling to sign export contracts after New Delhi allowed 1 million tons of shipments as mills are seeking hefty premiums over London prices, sources told Reuters. Before export approval, Indian prices were at a big discount to global prices, making exports profitable. However, post-approval, Indian prices surged while global prices declined. Elsewhere, Thai businesses are expected to incur up to 1 billion baht ($29.5 million) in losses from China’s ban on sugar syrup and premixed powder exports from the Southeast Asian nation, with shipments left stranded in Chinese ports.
Arabica coffee settled up 3.6 cents, or 1%, at $3.4755 per lb, having hit a record high of $3.4890 per lb on Thursday. Dealers cited persistent nervousness in the physical sector following the record high and added global inventories remain tight, while supply chain issues have not eased.
Source: Brecorder
