LONDON: White sugar futures on ICE climbed on Monday, boosted by tightening supplies linked partly to export curbs imposed by India, while cocoa and robusta coffee prices also rose.
New York-based raw sugar, arabica coffee, and cocoa contracts were closed on Monday for a US public holiday.
SUGAR
August white sugar rose 1.2% to $574.60 per tonne by 1027 GMT after climbing to a contract high of $574.70.
Dealers said last week’s announcement that India was imposing export restrictions on sugar for the first time in six years had helped to boost international prices.
“We think that the Indian announcement may have been one of the reasons which have caused white prices to make an extra leap upwards, based on fears that if the mechanics are onerous, then less than 10 million tonnes will be exported,” broker Marex said in a report.
Marex also noted many other potential suppliers of white sugar seemed to be also facing problems with two refiners in the Gulf working below capacity and Algeria’s ban on sugar exports remaining in place.
Speculators increased a net long position in white sugar in the week of May 24, according to exchange data.
COCOA
September London cocoa rose 1.5% to 1,765 pounds per tonne, climbing further away from a two-month low set last week of 1,722 pounds.
Dealers said the market had become technically oversold during the recent decline in prices although generally favourable crop weather in top producer Ivory Coast may help to keep a lid on prices.
COFFEE
July robusta coffee rose 0.1% to $2,100 a tonne.
Coffee exports from top robusta producer Vietnam are estimated to increase 24.2% in the first five months of this year from a year earlier to 889,000 tonnes, government data released on Sunday showed.
Source: Brecorder
