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Markets

Raw sugar hits highest in more than 4 years

  • December New York cocoa rose 0.4% to $2,593 a tonne, having hit a five-month high of $2,607 earlier
  • December arabica coffee rose 0.1% to $1.8985 per lb. It hit a nearly seven-year high above $2 per lb late July
Published August 13, 2021

LONDON: Raw sugar futures on ICE hit their highest in more than four years on Friday, zoning in on the 20 cent per lb level following downgrades to the production outlook in top producer Brazil.

New York cocoa hit its highest in five months.

SUGAR

October raw sugar rose 1.8% to 19.90 cents per lb at 1115 GMT, having hit a peak of 19.99 cents.

Dealers said sugar has an upside bias given the production outlook in Brazil, but added there may be a limit to the gains in the short term as physical demand is muted.

Raw sugar edges higher with supplies set to tighten

Brazil's 2021/22 center-south (CS) sugar production is forecast to fall to 32.5 million tonnes from a June forecast of 34.1 million tonnes as drought and frosts damage the sugarcane crop, food trader Czarnikow said.

October white sugar rose 2.9% to $490.10 a tonne.

COFFEE

December arabica coffee rose 0.1% to $1.8985 per lb. It hit a nearly seven-year high above $2 per lb late July.

Arabica is underpinned by a diminished outlook for next season's crop in top producer Brazil after frost damage, with this year's harvest now almost complete.

November robusta coffee was flat at $1,854 a tonne.

Raw sugar futures ease, focus remains on Brazilian crops

COCOA

December New York cocoa rose 0.4% to $2,593 a tonne, having hit a five-month high of $2,607 earlier.

Dealers said the continuing reopening of economies worldwide should improve demand going forward.

December London cocoa rose 0.8% to 1,783 pounds per tonne, having matched Thursday's five-month high of 1,784 pounds earlier.

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