Onome Amuge
Raw sugar futures on ICE gained strength on Monday, buoyed by positive indications of harvests in the key sugar producing Centre-south region of leading producer Brazil. On the other hand, it was a different trade scenario for cocoa and coffee as prices of both commodities lost more grounds to settle on bearish platforms.
May raw sugar was up 0.2 per cent to 15.79 cents per Ib while May white sugar gained $1.50 (0.3 per cent) to $454.90 a tonne.
Sugar dealers noted the market is keeping a close watch on the outlook for production in Brazil where a gradual start to a harvest is expected. However, worries about the crop’s rally persist as an overall weakness in commodity markets is likely to limit the scope of recovery in sugar prices.
May London cocoa was down 0.75 per cent to 1,723 pounds a tonne. May New York cocoa lost $13 (0.5 per cent) to $2,480 a tonne.
According to dealers, broad-based weakness in commodity markets and concerns over another wave of the covid-19 pandemic in Europe despite increased vaccinations, is bound to affect cocoa prices. Moreso, cocoa arrivals from Ivory Coast which reached 1.622 million tonnes last week since the start of the season on October 1 is below expectations, down 0.1 per cent compared to 1.623 million tonnes registered in the same period last season.
May arabica coffee was down 0.65 cents (0.5 per cent) to $1.2835 per Ib while May robusta coffee lost $3 (0.2 per cent) to $1,377 a tonne.
Dealers noted that despite the outlook for coffee demand shifting upward, coffee businesses hit by the covid-19 in many regions of Europe and other parts of the world are yet to register full recoveries.
