Raw sugar futures on ICE inched up on Tuesday after climbing to their highest since March, supported by a strong Brazilian currency but capped by lackluster fundamentals, while coffee and cocoa also rose. March raw sugar settled up 0.03 cent, or 0.2 percent, at 12.97 cents per lb. after rising to a seven-month high of 12.99 cents. The spot contract has closed higher for nine straight sessions.
Continued strength in the currency of top grower Brazil was seen as supportive, as it discourages producer selling. The market faced key technical resistance at 13 cents, dealers said. "If we manage to get a close above the 13 cent level, the next level of resistance is going to be around 13.30," said Boyd Cruel, senior market strategist at High Ridge Futures.
"If we fail, then we could probably work our way down to those lows from September... The fundamentals remain somewhat neutral to bearish though the market has factored most of that in," Cruel said. Indian sugar mills have signed deals to export raw sugar for the first time in three years following new subsidies, sources told Reuters.
The French government reduced its 2018 sugar beet output estimate to 40.4 million tonnes from 41.1 million seen last month. This is 12.7 percent below last year but 8.8 percent above the five-year average. December white sugar settled up $3.20, or 0.9 percent, at $353.40 per tonne.
December arabica coffee settled up 1.3 cent, or 1.2 percent, at $1.1315 per lb., its strongest settlement since late June. November robusta coffee settled up $9, or 0.5 percent, at $1,693 per tonne. Vietnam exported 1.795 million tonnes (29.9 million 60-kg bags) of coffee in 2017/18, a 12.3 percent increase from the previous crop, data showed.
The International Coffee Organization now sees a global surplus of 2.58 million bags for 2017/18 versus a previously expected 3.56 million-bag deficit. December New York cocoa settled up $33, or 1.6 percent, at $2,119 per tonne, its third consecutive positive finish and largely erased last week's losses.
"Demand is what we'll need to move much higher... third quarter grindings could help," said Peter Mooses, senior market strategist at RJO Futures. Data on regional third-quarter grindings is set to be published in the coming days. December London cocoa settled up 22 pounds, or 1.4 percent, at 1,592 pounds per tonne. Ghana replaced three deputy chief executives at the cocoa industry regulator, Cocobod, government sources said.