Raw sugar futures on ICE were higher on Friday, as prices consolidated above Wednesday's 2-1/2 year low, though the spot contract closed the week down for the seventh straight week as traders focused on a global surplus. May raw sugar settled up 0.03 cent, or 0.3 percent, at 12.08 cents per lb, still within sight of Wednesday's 2-1/2 year low of 11.93 cents. It closed the week down 2.1 percent.
Total open interest rose above 1 million contracts this week for the first time since March 2008, when spot prices were also around 12 cents, ICE data show. Prices rose as the market consolidated above this week's low, dealers said.
"The market remains capped by producer selling coming closer to market levels," Sucden Financial senior trader Nick Penney said in a market note. Volumes were boosted by the rolling forward of positions out of May into July with the expiry of May options on Monday providing a short-term focus.
In the whites market, the focus was on the expiry of the May contract later on Friday with a delivery of less than 150,000 tonnes now anticipated. The sugar is expected to come from Central America, Thailand and possibly the EU although depressed prices curbed interest in tendering European sugar.
August white sugar settled up $1.40, or 0.4 percent, at $339 per tonne. July New York cocoa settled up $12, or 0.5 percent, at $2,576 per tonne. For the week, it rose for the first time in three weeks.
The contract remained within this month's range of $2,474 to $2,675 as dealers await next week's first-quarter grind data for Europe and North America. Europe's first-quarter grind, scheduled to be issued on Wednesday, is expected to show a year-on-year rise of 2 to 4 percent. The grind showed year-on-year increases in every quarter last year.
Dealers said the outlook was less clear for North America, where grind data is due to be released on Thursday, with estimates ranging from 1.5 percent lower to 2 percent higher. July London cocoa settled up 3 pounds, or 0.2 percent, at 1,764 pounds per tonne with gains tempered by a firm sterling against the dollar.
July arabica coffee settled down 0.5 cent, or 0.4 percent, at $1.195 per lb, with the prospect of a record crop in Brazil this year continuing to keep a lid on prices. July robusta coffee closed flat at 1,736 a tonne.
Comments
Comments are closed.