SOFTS-Raw sugar futures rise as nearby premium climbs

  • Reuters
  • Commodities News
SOFTS-Raw sugar futures rise as nearby premium climbs
Credit: © Reuters.

(Adds quote, updates prices)

LONDON, Feb 1 (Reuters) - Raw sugar futures on ICE (NYSE: ICE ) were higher on Monday, boosted by nearby supply tightness in the physical market, while arabica coffee prices also advanced.

SUGAR

* March raw sugar SBc1 rose 0.37 cents, or 2.3%, to 16.20 cents per lb by 1534 GMT.

* Dealers said March's premium to May SB-1=R was widening ahead of its expiry this month as stronger than expected demand tightens the physical market.

* They noted the outlook for prices could hinge on whether the extra demand is front-loading or rather reflects higher than previously believed global consumption.

* "It certainly was (front-loading) in the case of China ... In other countries we have seen no hard evidence of front-loading," said Marex Spectron analyst Robin Shaw.

* March white sugar LSUc1 ​​rose $10.70, or 2.35%, to $466.80 a tonne.

* Raw sugar futures SBc1 look set to end this year more than 8% below current levels, with a marginal global surplus this season seen widening slightly in 2021/22, a Reuters poll of 11 traders and analysts showed on Monday. SUG/POLL

COFFEE

* March arabica coffee KCc1 rose 2.3 cents, or 1.9%, to $1.2530 per lb.

* Dealers said the market derived some support from concern over dry weather in parts of Brazil's coffee belt.

* March robusta coffee LRCc1 was up $12, or 0.9%, at $1,318 a tonne.

COCOA

* March New York cocoa CCc1 was down $22, or 0.9%, at $2,509 a tonne.

* Dealers said there remain concerns that there is still a lot of cocoa available from top grower Ivory Coast, with talk that there has been active trade in the physical market in recent days at comparatively low levels.

* March London cocoa LCCc1 fell 13 pounds, or 0.75%, to 1,715 pounds a tonne.

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