LONDON, Feb 8 (Reuters) - White sugar futures on ICE (NYSE: ICE ) rose to their highest in nearly four years on Monday, buoyed by physical supply tightness that has spurred interest in the front-month March LSUH1 contract ahead of this week's expiry.
Cocoa and coffee retreated.
* March white sugar LSUc1 , which expires on Friday, was 0.4% up at $477.30 a tonne by 1440 GMT after peaking at $479.70, its highest since April 2017.
* Tightness in the physical market linked to a global shortage of shipping containers has pushed the March contract to a wide premium over May LSU-1=R as buyers head to the exchange to source supplies.
* March raw sugar SBc1 rose 0.3% to 16.47 cents per lb.
* Speculators cut their bullish bet in ICE raw sugar by 6,171 contracts to 149,896 contracts in the week to Feb. 2, data showed. Broker Marex Spectron said sugar pundits may have been under-estimating consumption for several years, hence current high prices that do not seem otherwise justified by fundamentals.
* In other news, Brazil's Raizen has reached an agreement to buy Biosev BSEV3.SA , the sugar unit controlled by Louis Dreyfus, in a cash and stock deal, the companies said. May New York cocoa CCc2 fell 0.2% to $2,465 a tonne.
* Speculators increased a bullish bet in New York cocoa by 1,877 contracts to 12,255 contracts in the week to Feb 2. Cocoa prices are expected to fall by the end of 2021 because of the COVID-19 pandemic's continuing impact on demand, with a large surplus also expected, a Reuters poll showed. May London cocoa LCCc2 fell 0.6% to 1,661 pounds a tonne.
* March arabica coffee KCc1 was flat at $1.2450 per lb.
* Arabica is being held back by rising exchange stocks, but adverse weather in top producer Brazil is expected to hit the upcoming crop. Speculators raised their long position in arabica coffee futures to 22,827 contracts in the week to Feb. 2. May robusta coffee LRCc2 dipped 0.1% to $1,358 a tonne.
* Top robusta producer Vietnam exported 160,615 tonnes of coffee in January, up 10.2% from a year earlier, data showed. (Editing by Kirsten Donovan and David Goodman )
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.