Updates with market activity, adds comments and closing prices
NEW YORK/LONDON, October 7 (Reuters) – Raw Sugar Futures on ICE pink on Friday as oil prices continued to climb after The OPEC+ decisionthis week make its biggest supply cut since 2020while London Cocoa hit a two-year high.
Rising energy prices tend to prompt sugar cane factories in Brazil, the largest producer, to reduce sugar production in favor of ethanol, a biofuel made from cane.
SUGAR
* March raw sugar SBc1settled 0.22 cents, or 1.2%, at 18.68 cents per poundafter gaining 2.8% on Thursday.
*DTraders said rising oil prices could impact production strategies at Brazilian factories, shifting some of the allocation from sugar cane towards ethanol and away from sugar if oil prices gasoline are also increasing.
* There was also talk of rains in Brazil hurting the pace of the harvest and threatening to reduce sugar production during the season.
* December white sugar LSUc1rose $1.50, or 0.3%, to $552.80 per tonne.
COCOA
* Cocoa March in London LCCc2 rose 28 pounds, or 1.5%, to 1,939 pounds per ton after hitting a high of 1,943 – the highest since May 2020.
* The pound fell further, pushing up British currency-denominated cocoa prices, although it has since recovered somewhat. GBP/
* Dealers said technical chart signals are bullish for London Cocoa at the moment.
* December New York Cocoa CCc1 rose $23, or 1.0%, to $2,396 per tonne.
COFFEE
* December arabica coffee KCc1rose 0.4 cents, or 0.2%, to $2.181 per poundafter stabilizing at 3.1% on Thursday to be close to the recent a month down.
* Arabica came under pressure as rains in top producer Brazil improved prospects for next year’s crop, although short term the tightness of supply is supporting prices.
* Coffee production in Colombia this year should fall to one eight years low of around 12 million 60 kg bags, with a drop in plantation renovations and the use of fertilizers lleading to potential problems for future harvests.
* November robusta coffee LRCc1rose $15, or 0.7%, to $2,155 per tonne.
* First robusta producer in VietnamThe country’s coffee exports in September were down 17.8% from the previous month, although the country exported 13.1% more coffee on an annual basis in the first nine months of 2022.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Elaine Hardcastle, Marguerita Choy and Paul Simao)
(([email protected]; +1 332 220 8062; Reuters messaging: [email protected] – https://twitter.com/tx_marcelo))
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