Raw sugar, arabica coffee and cocoa futures closed firmer Tuesday on short-covering and position rolling in largely moderate business. Key October raw sugar futures increased 0.56 cent or by 2.04 percent to close at 28.04 cents a lb. Total market volume around 55,400 lots, about a third below the 30-day norm, according to Thomson Reuters data.
"We have the summertime blues," said Country Hedging Inc analyst Sterling Smith. Sugar getting some support from small Brazil crop and some uncertainty about sugar exports from No 2 grower India. Open interest drops on Monday to 585,468 lots as of August 15, which is the lowest since May 24, ICE Futures US exchange data showed.
December arabica coffee futures jumped 5.60 cents, or 2.25 percent, to close at $2.55 per lb. Market up on short-covering, said traders. December hits automatic buy order stops once it surged past the 200-day moving average around $2.5194, said traders. September/December spreading continued ahead of September's first notice day August 23, said traders.
Market volume around 19,700 lots, which is less than 2 percent below the 30-day average, Thomson Reuters data showed. Key December rose $58 or almost 2 percent to finish at $2,989 a tonne. Total volume around 23,900, almost 15 percent above the 30-day average, preliminary Thomson Reuters data. Market got a lift on short-covering, said dealers.
September/December position rolling continued ahead of the September contract's first notice day Thursday, said traders. Market still viewed as bearish technically after the 26-day and 40-day moving averages crossed above the market around $3,060 late last week, and as plentiful supplies pressured the nearby contracts.
Comments
Comments are closed.