Sugar Climbs in New York on Signs of Import Demand; Cocoa Gains

September 3rd, 2013

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Category: Cocoa, Sugar

(Bloomberg) – Sugar rose for the first time in five days in New York as premiums in the physical market signal growing import demand. Cocoa also advanced.

Brazilian raw sugar for loading this month was at a premium of 0.05 cent to 0.1 cent to the October futures in New York last week, compared with 0.05 cent as of Aug. 1, Swiss Sugar Brokers said in a report dated Aug. 31. About 700,000 metric tons of sugar was sold in the past three weeks with Chinese and Middle East refiners buying, the company said.

“The physical premiums are a little bit stronger, we’ve seen very good demand,” Jonathan Kingsman, managing director of researcher Kingsman SA in Lausanne, Switzerland, said by phone today.  “Because of this strengthening of import demand it’s beginning to look as if the surplus problem for 2013 is on its way to being solved.”

Raw sugar for delivery in October advanced 0.7 percent to 16.45 cents a pound by 5:47 a.m. in New York on ICE Futures U.S. White sugar for delivery the same month rose 0.2 percent to $478.50 a ton on NYSE Liffe in London.

Sugar production will exceed demand by 4.5 million tons in the 2013-14 season that starts in October, according to the International Sugar Organization in London. That follows a record surplus of 10 million tons in 2012-13.

Cocoa for December delivery rose 0.6 percent to $2,450 a ton on ICE. Cocoa for delivery in December increased 0.6 percent to 1,629 pounds ($2,538) a ton in London, the first gain in four days.

Arabica coffee for delivery in December climbed 0.6 percent to $1.1695 a pound in New York. Robusta for November delivery advanced 0.6 percent to $1,769 a ton in London.

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