LONDON: Raw sugar futures on ICE were higher on Tuesday boosted by supply tightness which is expected to continue through the first quarter of next year, while arabica coffee prices also rose.
Sugar
March raw sugar rose 1% to 20.35 cents per lb by 1120 GMT, climbing back towards last week’s near 6-year high of 20.73 cents.
Dealers noted concern about supply tightness was increasing the premium for front month March over May which climbed to about 1.29 cents a lb on Tuesday, up from around 1.24 cents at the close on Monday.
Delays to harvests in Thailand, Australia and Central America have helped to tighten supplies while rains have also meant some cane in Brazil will not be cut until next season.
March white sugar rose 1% to $558.80 a tonne.
Raw sugar gains on supply tightness and China demand hopes
Coffee
March arabica coffee rose 0.7% to $1.6545 per lb.
Dealers said the market had stabilised after a prolonged slide in October and November but the scope for rebound was likely capped by rising exchange stocks.
ICE certified coffee stocks stood at 765,583 bags, as of Dec. 19, the highest level in more than five months. There were also 299,142 bags pending grading.
March robusta coffee rose 0.05% to $1,859 a tonne.
Cocoa
March London cocoa rose 0.2% to 1,979 pounds a tonne.
Cocoa arrivals at ports in top grower Ivory Coast had reached 1.06 million tonnes by Dec. 18 since the start of the season on Oct. 1, up 12% from the same period last season, exporters estimated on Tuesday.
March New York cocoa fell 0.4% to $2,489 a tonne.
Source: Brecorder
