LONDON: Raw sugar futures on ICE edged up on Thursday, extending a recovery from Tuesday’s two-week lows, while cocoa prices fell as excess supplies continue to pressure the market. October raw sugar edged up 0.1% to 16.94 cents per lb at 1422 GMT, having hit a two-week low of 16.73 cents on Tuesday.
Dealers said sugar’s upside remains capped by a lack of physical demand, fund long liquidation and from scale down buying from commercial consumers.
The CEO of Suedzucker, Europe’s largest sugar refiner, reaffirmed expectations of better full-year profit on hopes the economic impact of the Covid-19 pandemic will subside.
August white sugar rose 1.3% to $430.90 a tonne.
September New York cocoa fell 1% to $2,379 a tonne, having hit its highest in nearly a month on Monday.
Swiss chocolate maker Barry Callebaut said sales volume growth accelerated in the three months to May 31, with growth in the chocolate business jumping over 20%.
The group, which supplies chocolate and cocoa products to customers including Nestle, Mondelez and Hershey, said on-the-go consumption has recovered since many Covid-related lockdowns eased.
Still cocoa supplies remain ample following bumper harvests in top growers Ivory Coast and Ghana this season, capping cocoa prices.
North American cocoa grind data, a measure of demand, is expected later on Thursday.
September London cocoa fell 1.3% to 1,613 pounds per tonne?, having hit its highest in 1-1/2 months on Tuesday.
September arabica coffee rose 0.8% to $1.5790 per lb, having hit its highest since early July earlier. Arabica is gaining support from a strengthening in the Brazilian real versus the dollar, and from shipping bottlenecks that have delayed flows from top producers Brazil and Vietnam.
September robusta coffee was flat at $1,762 a tonne, having hit its highest in more than 2-1/2 years on Monday.
Coffee prices in top robusta producer Vietnam edged up this week due to tight supplies at the end of the season and shipping container bottlenecks, traders said.
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