LONDON: Raw sugar futures on ICE steadied on Thursday amid upbeat sentiment in wider markets and as investors eyed tight near-term supplies that sent prices near a six-year peak in the previous session.
Sugar
March raw sugar slipped 0.1% to 20.73 cents per lb at 1235 GMT, after touching its highest since February 2017 at 20.99 cents on Wednesday.
The dollar softened against major currencies and European stocks ticked higher on easing U.S. inflation expectations.
Indicating tight supply at present, the premium for front-month March futures over May climbed to 1.54 cents per lb, its highest in a decade.
Dealers said the trend is pointing upwards as physical traders are getting twitchy about global production while speculative funds have a strong buying appetite.
March white sugar rose 0.4% to $567.90 a tonne, having hit its highest since mid-November on Wednesday at $574.
Raw sugar hits multi-year high as supplies tighten
Coffee
March arabica coffee fell 0.6% to $1.6805 per lb.
Weighing on coffee, data showed ICE stocks rose to 785,600 bags, their highest since July. There were also 275,562 bags pending grading.
World coffee production is forecast to rebound in 2022/23, primarily because of a larger crop in Brazil, the U.S. Department of Agriculture said.
March robusta coffee fell 0.1% to $1,877 a tonne, having hit its lowest since Dec. 6 on Tuesday at $1,851.
Local coffee prices in top robusta producer Vietnam drifted lower this week on thin demand, traders said.
Cocoa
March London cocoa rose 0.9% to 2,025 pounds per tonne.
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