Raw sugar futures edge higher, arabica also rises

LONDON: Raw sugar futures on ICE were marginally higher on Thursday as the market awaited Brazilian production data, while arabica coffee futures also rose.

SUGAR

July raw sugar rose by 0.02 cent, or 0.1%, to 17.75 cents per lb by 1217 GMT.

Dealers said the expected release later on Thursday of data related to cane crushing in the key Centre-South region of Brazil covering the second half of May would provide a short-term focus for the market.

Sugar output in the region is expected to be similar to the 2.55 million tonnes produced in the same period a year ago.

August white sugar fell by $6.30, or 1.4%, to $457 a tonne.

COFFEE

July arabica coffee rose by 1.25 cents, or 0.8%, to $1.5845 per lb.

Dealers said the market had regained some strength after slipping from a recent 4-1/2 year peak as rains in Brazil improved the outlook for next year's harvest.

They continued to keep a close watch on the situation in Colombia where anti-government protests had severely disrupted coffee exports. There were signs of Wednesday that the protests were losing steam.

July robusta coffee rose by $1, or 0.1%, to $1,583 a tonne.

COCOA

September London cocoa rose by 12 pounds, or 0.75%, to 1,621 pounds a tonne.

Fitch Solutions said in a note on Thursday that the market would trade between 1,600 and 1,750 pounds over the coming weeks of June and July.

The report noted the COVID-19 pandemic continued to disrupt multiple consumption channels as some restrictions remain in place in many markets even as vaccination rates rise.

September New York cocoa rose by $21, or 0.9%, to $2,413 a tonne.