Commodities

Raw sugar hits highest level since Aug as deficit fears grow

Reuters London | Updated on October 02, 2019 Published on October 02, 2019

Raw sugar futures on ICE hit their highest level since mid-August on Wednesday as funds covered large net short positions on concerns this season's global market deficit may be bigger than initially forecast. Cocoa edged higher again after top producer Ivory Coast said earlier this week that it planned to cap production. March raw sugar was up 0.01 cent, or 0.1 per cent, at 12.89 cents per lb by 1106 GMT after peaking at 12.93 cents, its highest since Auguat 12. Also underpinning sugar prices, only 175,000 tonnes of raw sugar were delivered against the October contract, which expired on Monday, far below the more than 2 million delivered at the previous expiry. “I think the funds are getting scared and producers are happy to hold out (for higher prices). The next contract expiry is not till March so they've got time,” said a dealer. “At 13.50 cents we might see more appetite to sell.” December white sugar was down $1.9, or 0.6 per cent %, at $342.10 a tonne after peaking at $347.20 on Monday, the highest since early March.

December New York cocoa was up $13, or 0.5 per cent, at $2,465 a tonne. March London cocoa was up £13 pounds, or 0.7%, at £1,880a tonne.

December arabica coffee fell 0.7 cents, to $1.0065 per lb. November robusta coffee was down $3,at $1,308 a tonne. Top coffee producer Brazil exported 2.69 million 60-kg bags in September down from 2.99 million bags a year ago.

Published on October 02, 2019

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