Raw sugar futures on ICE rose on Friday, as higher oil prices helped lift the March contract to its highest in nearly a month, and New York cocoa also climbed to a one-month high. March raw sugar settled up 0.53 cent, or 4.2 percent, at 13.14 cents per lb as the market, after touching 13.25, its highest since Jan. 16.
On the week, the contract rose 3.4 percent, its third straight week of gains. The rise in oil prices helped buoy sugar futures, dealers said. Brent crude hit its highest levels so far this year, lifted by output cuts. Options for the March contract expired on Friday. The volume of open options near 13 cents helped pull prices up towards that level, one US trader said.
Mills in Brazil's center-south are likely to start harvesting the new sugar cane crop later than usual, analysts and millers said. Earlier this week, India hiked the domestic minimum selling price for refined sugar to 31 rupees per kg from 29 rupees, a move that dealers said could have mixed implications. On the one hand, it could translate to reduced Indian exports as mills seek to sell more locally; on the other, it could encourage greater production in the country.
May white sugar settled up $12.90, or 3.8 percent, at $354.70 per tonne. May New York cocoa settled up $69, or 3 percent, at $2,339 per tonne after peaking at $2,345, its highest since Jan. 18. On the week, the contract gained 4.5 percent, its second consecutive weekly gain.
Dealers pointed to continued strong demand for cocoa as well as some technically driven buying. The contract closed just at the 200-day moving average after trading below it for about a month. May London cocoa settled up 42 pounds, or 2.4 percent, at 1,760 pounds per tonne. On the week, the contract gained 5.6 percent.
World cocoa prices are forecast to rise slightly this year despite a small global surplus, a Reuters survey of seven analysts and traders showed on Friday. May arabica coffee settled up 0.2 cent, or 0.2 percent, at $1.0165 per lb. On the week, the contract lost 3.7 percent, its third straight week of declines. Prices remained near 2019 lows set on Thursday as high stocks kept the market on the defensive. May robusta coffee settled up $18, or 1.2 percent, at $1,555 per tonne.
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