Sugar, arabica ease on better harvest weather

June 14th, 2016


Category: Sugar

different types of sugar - brown, white and refined sugar(Reuters) – Raw sugar and arabica coffee futures eased on Tuesday on favourable harvest weather and a stronger dollar, while London cocoa gained supported by a weak pound.
Warmer temperatures in sugarcane and arabica growing areas in top grower Brazil reduced concerns over risks of isolated frost.
In sugar, traders’ attention shifted to data from Brazilian cane industry group Unica, expected to be released on Wednesday.
“The data is expected to show 4-5 days of the cane crush lost due to rains in the second half of May,” said Michael Liddiard of consultancy Agrilion.
“As far as the trade is concerned, it (lost days) is totally in the price.”
July raw sugar was down 0.16 cent, or 0.8 percent, at 19.38 cents per lb at 1106 GMT, drifting further away from Thursday’s 2-1/2-year high of 19.92 cents a lb.
“Medium term the technical/psychological levels of 20 cents per lb and 19 cents per lb would seem the key — all other things being equal,” Liddiard said.
“A break through 20 cents would probably bring in fresh buying while a break through 19 cents would probably accelerate profit taking, especially with the end of a quarter and half year approaching.”
August white sugar was down $2.30, or 0.4 percent, at $525.20 per tonne.
Arabica coffee futures edged down, squeezed by weaker oil prices and the stronger dollar.
September arabica coffee was down 2.35 cents, or 1.7 percent, at $1.3695 per lb, well below Thursday’s 13-month high of $1.4685. July robusta was down $11, or 0.7 percent, at $1,638 per tonne, pressured by the firmer dollar and underpinned by a very poor crop in Brazil due to drought.
September London cocoa equalled a five-week high of 2,293 pounds a tonne touched in the previous session, then lost ground to trade up 3 pounds, or 0.1 percent, at 2,287 pounds per tonne, supported by weakness in the pound on concerns that Britain might vote to leave the European Union.
September New York cocoa was down $10, or 0.3 percent, at $3,099 per tonne.

Add New Comment

Forgot password? or Register

You are commenting as a guest.