SOFTS-Raw sugar futures rise as nearby premium climbs; coffee also up

  • Reuters
  • Commodities News
SOFTS-Raw sugar futures rise as nearby premium climbs; coffee also up

(Includes closing prices, comments)

NEW YORK/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 and cocoa prices also advanced in a positive day for most commodities and equities. O/R MKTS/GLOB

SUGAR

* March raw sugar SBc1 rose 2% to 16.15 cents per lb.

* 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 global consumption that is higher than previously believed.

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

* March white sugar LSUc1 ​​rose $8.60, or 2.1%, to $464.70 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 2021/2022, a Reuters poll of 11 traders and analysts showed on Monday. SUG/POLL

COFFEE

* March arabica coffee KCc1 settled up 2.4 cents, or 2.0%, at $1.2535 per lb​​.

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

* A Sao Paulo-based broker said Brazil's spot coffee market remained firm as producers hold remaining stocks due to the expectation of reduced availability this year.

* "But differentials remain stable, so the market might have already priced in this smaller Brazilian crop," he said.

* Brazilian coffee exports were higher in January compared to a year ago, the government said. March robusta coffee LRCc1 settled up $14, or 1.1%, at $1,320 a tonne.

COCOA

* March New York cocoa CCc1 ​​settled up $16, or 0.6%, to $2,547 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 ​​settled up 11 pounds, or 0.6%, to 1,739 pounds per tonne​.

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