Raw Sugar Rises 2%, Coffee Gains As 'Risk-On' Mode Lifts Commodities

By Dave Simpson
Raw Sugar Rises 2%, Coffee Gains As 'Risk-On' Mode Lifts Commodities

Raw sugar futures on ICE steadied on Tuesday 13 December, boosted by near-term supply tightness and somewhat reduced concerns about inflation in the wider financial markets.

Arabica coffee rose again, even after surging more than 5% on Monday 13 December.


* March raw sugar SBc1 ​settled up 0.38 cent, or 2.0%, at 19.76 cents per lb, having slid 1.1% on Monday 12 December.

* Dealers said the market is being boosted by near-term supply tightness and an overall reluctance by funds to liquidate their long positions.

* France's farm ministry estimated sugar beet output fell 8.2% this year versus last.


* On the downside however, there remains some pressure from data out on Monday 12 December showing top producer Brazil's sugar production in the second half of November was up six-fold versus a year ago, dealers said.

* March white sugar LSUc1 rose $6.30, or 1.2%, at $540.30 a tonne.


* March arabica coffee KCc2 settled up 0.85 cent, or 0.5%, at $1.679 per lb, after surging 5.6% on Monday 12 December.

* "This is risk-on ... if you're long, cheap and oversold in dollar-sensitive markets like wheat or coffee, this is your best possible CPI outcome," Peak Research said in a note, referring to the US inflation data.

* Dealers said there remained concerns about the outlook for the coffee crop next year in top producer Brazil.


* Data showed Brazilian coffee exports jumped 19% year-on-year in November amid improved shipping conditions.

* March robusta coffee LRCc2 fell $12, or 0.6%, to $1,872 a tonne.


* March New York cocoa CCc2 rose $39, or 1.6%, to $2,541 a tonne.

* Rainfall was below average last week in most of top producer Ivory Coast's cocoa-growing regions, but soil moisture remained adequate for the development of the cocoa mid-crop.

* Cocoa arrivals at ports in Ivory Coast reached 954,000 tonnes by 11 December since the season start on 1 October, up 10% year-on-year.


* March London cocoa LCCc2 rose 20 pounds, or 1.0%, to 1,951 pounds per tonne​​.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.