Raw sugar up as supplies tighten, cocoa gains nearly 3pc

NEW YORK: Raw sugar futures on ICE closed up on Thursday, boosted by tightening supplies, while cocoa prices climbed on a potential drop in production in the upcoming 2021/22 season.

SUGAR

October raw sugar settled up 0.23 cent, or 1.2pc, at 19.90 cents per lb.

Dealers said high freight rates had reduced the appetite to take delivery against the October contract, which expires at the end of this month.

The market was underpinned, however, by tightening supplies after a drop in Brazilian production, with sugar exports falling to 2.60 million tonnes in August, down from 3.14 million tonnes in the same month last year.

"The freeze and drought damage is there in Brazil as industry sources have said to expect a short season for processing," said Jack Scoville with the Price Futures Group in Chicago.

October white sugar rose by $5.60, or 1.2pc, at $488.90 a tonne.

COCOA

December New York cocoa settled up $73, or 2.9pc, to $2,611 a tonne.

Dealers said the market was supported by an expected decline in production in West Africa during the upcoming 2021/22 season, which begins next month.

Raw sugar sets 4-1/2 year peak; cocoa also climbs

Nigeria's cocoa output is likely to fall by at least 12.5pc next season as late and heavy rains threaten to damage the main crop.

Climate24 said that most of the Ivorian, Ghanaian and west-Nigerian cocoa regions had a much wetter August, with rains at least 50pc more abundant than the norm.

December London cocoa gained 38 pounds, or 2.2pc, to 1,797 pounds per tonne.

COFFEE

November robusta coffee closed down $10, or 0.5pc, at $2,056 a tonne, retreating from a four-year high of $2,092 set on Wednesday.

Dealers said the market remained underpinned by a pick-up in robusta demand, linked to the high price of arabica beans, and the current high cost of shipping supplies from top robusta producer Vietnam.

Markets in Vietnam were closed on Thursday and will remain shut on Friday for national holidays.

December arabica coffee settled down 1.3 cent, or 0.7pc, at $1.9435 per lb.

Consultancy Safras & Mercado estimated Brazil's coffee harvest 97pc completed by Aug. 31, with crop showing good quality overall.