SOFTS-Raw sugar hits 4.5-year high, cocoa hits 5-month high

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Adds comment, price update

LONDON, August 16 (Reuters)Raw sugar futures on ICE hit a 4.5-year high on Monday, supported by fund purchases amid tight supply, while London cocoa hit a five-month high .

SUGAR

* October raw sugar SBc1 rose 0.1 cent, or 0.5%, to 20.05 cents a pound at 1340 GMT after hitting a high of 20.17 cents – the highest since February 2017.

* Dealers said weaker production prospects in south-central Brazil helped squeeze supplies.

* ICE raw sugar speculators raised their net long position by 18,012 contracts to 195,392 in the week to August 10, the data showed.

* They noted that the speculative (investor) long position was at its highest since the end of October 2020, when it peaked at 211,334 lots.

* “Investor buying increased during the rally, but it’s over and probably now closer to the end,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

* October white sugar LSUc1 rose $ 5.80, or 1.2%, to $ 496.90 a tonne.

COCOA

* December London cocoa LCCc2 was 14 pounds, or 0.8%, up to 1,802 pounds per tonne after hitting a five-month high of 1,804 pounds.

* Dealers said the market was supported by signs of recovering demand as restrictions related to the COVID-19 pandemic are lifted in some countries.

* The supply remains abundant, however, with production in Côte d’Ivoire and Ghana increasing during the 2020/21 season (October / September).

* December New York cocoa CCc2 rose $ 18, or 0.7%, to $ 2,638 a tonne after hitting a five-month high of $ 2,639.

* Heavy rains in most cocoa growing areas of Côte d’Ivoire last week have revived hopes for a quick start to the main harvest from October to March, farmers said on Monday.

COFFEE

* Arabica coffee in December KCc2 rose 0.1 cent, or 0.05%, to $ 1.8585 a pound.

* Robusta coffee in November LRCc2 rose $ 7, or 0.4%, to $ 1,843 per tonne.

(Reporting by Nigel Hunt; Editing by Emelia Sithole-Matarise and Barbara Lewis)

(([email protected]; +44 20 7542 8421; Reuters messaging: [email protected] ))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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