Raw sugar futures on ICE rose to the highest in a month on Friday, boosted by positive chart-based signals following a three-week rally above 10-year lows, while arabica coffee prices also advanced. October raw sugar settled up 0.21 cent, or 1.9 percent, at 11.01 cents per lb, after climbing to a one-month top at 11.03 cents.
The spot contract closed the week up 3.9 percent, its third straight weekly rise. Total open interest fell a steep 18,632 lots on Thursday to 975,394 lots, the 10th straight drop, ICE data show. Constructive chart formations following the rebound above last month's 10-year low prompted funds to scale back a large net short position, dealers said.
The prospect of lower production in Brazil and the European Union had helped to support prices although there remained concern about global oversupply. The scope for prices to rise significantly remained capped, however, by potential exports from India, traders said. December white sugar settled up $2.40, or 0.7 percent, at $331.90 per tonne. It closed the week up 2.6 percent.
The October contract slipped to a discount as large as $3.40 under December, compared with a 30-cent premium the prior session. October will expire next Friday and this bearish move on the spread indicates limited appetite to take delivery, traders said. December arabica coffee settled up 0.25 cent, or 0.2 percent, at $1.0245 per lb, hovering above Tuesday's 12-year low of 98.65 cents.
It closed the week up 0.6 percent, its first weekly gain in seven weeks. The rebound in top grower Brazil's currency this week helped the market regain some ground, as it made sales less attractive in local currency terms. A holiday in Brazil on Friday helped to curb selling pressure from there, traders said.
November robusta coffee settled down $1, or 0.07 percent, at $1,491 per tonne. For the week, the second-position contract closed the week down 0.7 percent, its seventh straight weekly loss after falling to a 2-1/2-year low of $1,465 on Tuesday. December New York cocoa settled down $22, or 1 percent, at $2,259 per tonne.
For the week, it closed down 3.3 percent, with traders noting generally favourable main crop prospects in West Africa. December London cocoa settled down 9 pounds, or 0.5 percent, at 1,643 pounds per tonne. It closed the week down 2.7 percent.
Comments
Comments are closed.