Sugar, cocoa and coffee futures rose on Friday supported by a weaker dollar, with sugar traders taking stock of consultancy Kingsman's upward revision in its 2009/10 global sugar deficit forecast. December cocoa ended 20 pounds higher at 2,035 pounds a tonne, boosted by the weakness of sterling. December white sugar ended $6.30 higher at $577.70 per tonne. Market supported by lower cane crush projections for top producer Brazil.
November robusta coffee ended unchanged at $1,400 per tonne in routine dealings. The London cocoa market was supported by a weak pound at below Wednesday's 24 1/2-year peak. Sugar dealers said recent market fundamentals were bullish, but technical signals were bearish, and so the market faced a standoff and was consolidating in search of a fresh direction. "Everything is heating up on the bullish side, but technically the market is looking vulnerable," one London sugar futures dealer said.
"As time goes on, the fundamentals will take centre stage." The dealer was referring to recent bullish crop projections on Brazil, the world's top sugar producer and exporter. He was referring to an upwards revision in the 2009/10 global sugar cane deficit forecast by Lausanne-based consultancy Kingsman, and cuts in Brazilian cane crush projections by London-based consultancy Czarnikow, and Brazil's Cane Industry Association (Unica).
Kingsman on Friday raised its forecast for the global sugar deficit in 2009/10 to 8.3 million tonnes from a previous forecast for a deficit of 5.1 million tonnes. It said a poor West Asian monsoon and excessive rains in Brazil had led to the upwards revision. Dealers also focused on the expiry of the ICE October raw sugar contract on September 30. Global coffee consumption growth looks set to continue at a steady, sustained rate, Nestor Osorio, Executive Director of the International Coffee Organisation (ICO), said on Friday.
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