SOFTS-Raw sugar hits 7-1/2 month high, arabica also up

  • Reuters
  • Commodities News
SOFTS-Raw sugar hits 7-1/2 month high, arabica also up
Credit: © Reuters.

LONDON, Oct 12 (Reuters) - Raw sugar futures on ICE (NYSE: ICE ) climbed to a 7-1/2 month high on Monday buoyed by fund buying against the backdrop of concerns about dry weather in Brazil and uncertainty about India's export policy.

SUGAR

* March raw sugar SBc1 ​was up 0.24 cent, or 1.6%, at 14.47 cents per lb at 1134 GMT after climbing to a 7-1/2 month peak of 14.48 cents.

* Hedge funds and money managers increased their bullish bet on ICE raw sugar futures in the week to Oct. 6, data released on Friday showed. India has yet to announce the extent to which it will subsidise sugar exports with talk the decision could now be delayed until early next month.

* "In the very short term India holds the key; if they continue to keep the market guessing about the new year's export policy, no one dares sell," Marex Spectron analyst Robin Shaw said in a note.

* Sugar production increased sharply in Brazil in September as mills enter the final weeks of the current season, but the extremely dry weather started to hit cane agricultural yields, industry group Unica said on Friday. December white sugar LSUc1 rose by $8.00, or 2.1%, to $392.90 a tonne.

COFFEE

* December arabica coffee KCc1 rose by 1.25 cents, or 1.1%, to $1.1280 per lb, climbing further away from a more than two-month low of $1.0490 set earlier this month.

* Dealers said hot and dry weather in top producer Brazil had provided some support to the market.

* November robusta coffee LRCc1 rose by $3, or 0.2%, to $1,263 a tonne.

COCOA

* December London cocoa LCCc1 fell by 5 pounds, or 0.3%, to 1,684 pounds.

* Dealers said third-quarter European grind data, expected to be issued later this week, would be closely watched to see if demand remains weak due to the COVID-19 pandemic. The second quarter European grind showed a 8.9% fall, year-on-year.

* December New York cocoa CCc1 ​​was down $3, or 0.1%, at $2,429 a tonne.

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