SOFTS-Raw sugar consolidates after hitting 7-1/2 month peak

  • Reuters
  • Commodities News
SOFTS-Raw sugar consolidates after hitting 7-1/2 month peak
Credit: © Reuters.

LONDON, Oct 20 (Reuters) - Raw sugar futures on ICE (NYSE: ICE ) steadied on Tuesday after hitting a 7-1/2 month high in the previous session on uncertainty about the extent to which India might subsidise exports this season.

SUGAR

* March raw sugar SBc1 slipped 0.05 cents, or 0.3%, to 14.65 cents per lb at 0948 GMT, after reaching a 7-1/2 month peak of 14.72 cents on Monday.

* Traders are concerned supplies could tighten early next year with top producer Brazil between crops and the possibility of limited exports from key supplier India if the subsidy policy is further delayed or cut back.

* "Subsidies involve considerable costs – public funds that could well be needed elsewhere during the corona crisis," said Commerzbank (DE: CBKG ).

* All the same, the market gains have been driven mostly by fund buying and dealers note they have a very large long position so could soon grow circumspect about further buying.

* December white sugar LSUc1 fell $0.90, or 0.2%, to $402.30 a tonne.

COCOA

* March London cocoa LCCc2 fell 10 pounds, or 0.6%, to 1,663 pounds a tonne, holding above an eight-week low of 1,627 pounds set on Friday.

* Rising tensions in top grower Ivory Coast ahead of next week's presidential election are underpinning cocoa, though benign weather in the country's cocoa growing regions bodes well for the current crop and could weigh on prices. December New York cocoa CCc1 ​​was down $21, or 0.9%, at $2,404 a tonne.

COFFEE

* December arabica coffee KCc1 edged up 0.3 cents, or 0.3%, to $1.0635 per lb.

* Concerns over dry weather in top producer Brazil have receded somewhat of late, while demand for arabica remains weak due to slow reopening of coffee shops and restaurants amid the COVID-19 pandemic.

* Arabica is also under pressure from strong sales out of Brazil amid a weak currency and a record crop, while offers from Central America are starting to rise, dealers said.

* Uganda's coffee exports in September rose 40% from the same month last year. January robusta coffee LRCc2 fell $0.3, or 0.2%, to $1,302 a tonne.

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