Raw sugar rebounds from 5-1/2 month low as fund selling abates
- March New York cocoa was up 0.1% at $2,523 a tonne
- March arabica coffee was up 0.1% to $2.3510 per lb
- March raw sugar was 1.1% higher at 18.02 cents per lb
LONDON: Raw sugar futures on ICE were higher on Tuesday, rebounding from the prior session's 5-1/2 month low, with the recent bout of fund selling appearing to have dried up, while arabica coffee also edged up.
Sugar
March raw sugar was 1.1% higher at 18.02 cents per lb at 1150 GMT, regaining some ground after falling to a 5-1/2-month low of 17.60 cents on Monday.
Dealers said funds have been liquidating long positions during the last few days against the backdrop of strong starts to harvests in both Thailand and India.
"This increases the export potential in both countries," Commerzbank said in a note.
The recent drop in prices however has made Indian exports less viable in the short-term.
Indian mills are holding off on signing new sugar export contracts as falling global prices and a strengthening rupee have widened the gap between local and global rates, industry officials told Reuters.
March white sugar rose 0.9% to $485.50 a tonne.
Raw sugar hits fresh 5-month low; coffee, cocoa also fall
Coffee
March arabica coffee was up 0.1% to $2.3510 per lb.
The March contract may retest resistance at $2.3865 per lb, a break above which could lead to a gain to $2.4260, Reuters market analyst Wang Tao said.
March robusta coffee fell 0.04% to $2,259 a tonne.
Cocoa
March New York cocoa was up 0.1% at $2,523 a tonne.
March London cocoa fell 0.1% to 1,697 pounds a tonne.
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