London cocoa hits 1-1/2 month peak, raw sugar hits 2-week trough

LONDON: London cocoa futures on ICE hit their highest in 1-1/2 months on Tuesday after data showed demand has improved, while raw sugar hit a two week trough.

COCOA

September London cocoa rose 0.1% to 1,652 pounds per tonne at 1430 GMT, having hit its highest since late May.

Cocoa hit an eight-month low last week but has since edged higher.

Europe's second-quarter cocoa grind, a measure of demand, rose 13.6% from a year earlier to 356,854 tonnes, the European Cocoa Association said.

Germany's second-quarter 2021 cocoa grind rose 18% on the year to 93,064 tonnes, the German confectionery industry association BDSI said.

The ending of lockdowns, reopening of retail and restaurants plus the resumption of some events has helped confectionery demand.

Supplies remain ample however, following large crops in top growers Ivory Coast and Ghana this season.

September New York cocoa fell 0.4% to $2,420 a tonne.

NY cocoa dips to 8-month low, sugar falls

SUGAR

October raw sugar fell 1.2% to 16.79 cents per lb, having hit a two-week low earlier.

Dealers said the market remained under pressure as short-term demand is low and funds are liquidating long positions.

Top producer Brazil's centre-south sugar production reached a stronger-than-expected 2.89 million tonnes in the second half of June, data showed.

August white sugar fell 1.7% to $414.50 a tonne.

Raw sugar hits 1-1/2 month high, arabica touches 3-1/2 week peak

COFFEE

September arabica coffee fell 0.8% to $1.5275 per lb.

Political turmoil in top producer Brazil is pressuring the real currency and weighing on arabica - tempting dealers to sell dollar-priced coffee by raising returns in local currency terms.

The market has support below $1.50, however, dealers said, as roasters are tempted to buy at those levels. They added that with roasters' buying not complete, risk-reward favours the upside for arabica. September robusta coffee slid 1% to $1,727 a tonne, having hit its highest in 2-1/2 years on Monday.

Arabica coffee hits 3-week high on Brazil frost fears

Robusta supplies have tightened this year following a slowdown in shipments from top robusta producer Vietnam.