SOFTS-Raw sugar slips from 7-1/2 month peak

  • Reuters
  • Commodities News
SOFTS-Raw sugar slips from 7-1/2 month peak
Credit: © Reuters.

(Updates prices, adds details)

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

SUGAR

* March raw sugar SBc1 eased by 0.09 cents, or 0.6%, to 14.63 cents per lb at 1435 GMT, having touched a 7-1/2 month peak of 14.72 cents on Monday.

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

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

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

* Egypt has more than 1 million tonnes of sugar reserves, sufficient for more than four months, the agriculture ministry said. December white sugar LSUc1 fell $2.90, or 0.7%, to $400.30 a tonne.

COCOA

* March London cocoa LCCc2 fell 17 pounds, or 1%, to 1,656 pounds a tonne, holding above the 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 $30, or 1.2%, at $2,395 a tonne.

COFFEE

* December arabica coffee KCc1 fell 1.9 cents, or 1.7%, to $1.0415 per lb after hitting its lowest in nearly three months at $1.04.

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

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

* Uganda's September coffee exports rose 40% year on year. January robusta coffee LRCc2 fell $11, or 0.8%, to $1,293 a tonne.

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