July 13, 2017 / 7:55 PM / 14 days ago

SOFTS-ICE raw sugar, arabica coffee rally the most since late June

3 Min Read

 (Updates weather details in coffee section)
    NEW YORK/LONDON, July 13 (Reuters) - Raw sugar and arabica
coffee on ICE Futures U.S. both rallied the most since late June
on Thursday, as cocoa also jumped. 
   
    SUGAR 
    * October raw sugar               hit a session high of
14.18 cents per lb and settled up 0.65 cent, or 4.82 percent, at
14.14 cents, the biggest one-day rally since June 29.
    * Prices were supported by early gains in the Brazilian
currency, sparked by a corruption conviction of former president
Luiz Inacio Lula da Silva.             
    * The currency's gains typically reduce exporters' incentive
to sell dollar-traded commodities like coffee and sugar in the
top producer.
    * A more supportive technical structure helped prices break
through the 10-day moving average.
    * Low prices have spurred demand, said Michael McDougall,
director of commodities for Societe Generale in New York, citing
the white sugar premium's recovery from around $80 to $85.
    * August white sugar         settled up $11.80, or 2.9
percent, at $418.20 a tonne ahead of Friday's contract expiry
amid expectations of tighter deliverable supplies. 
    * One dealer forecast a delivery of about 350,000 tonnes.
    
    COFFEE 
    * September arabica coffee        peaked at $1.3185 and
settled up 3.6 cents, or 2.82 percent, at $1.312 per lb in the
biggest one-day gain since June 23.
    * Currency fluctuations helped lift prices above key
resistance levels.
    * "The Brazilian harvest is coming up short of
expectations," said Shawn Hackett, president of Hackett
Financial Advisors in Boca Raton, Fl. He also noted potential
frost concerns. "A worrisome cold air mass coming up from
Argentina is expected to move very close to the core coffee
production area."
    * September robusta coffee         settled up $48, or 2.29
percent, at $2,145 per tonne.
    * In top producer Vietnam, grade 2 robusta was offered at a
$10 discount to September futures, versus last week's $20
discount.             
        
    COCOA  
    * September New York cocoa        settled up $51, or 2.80
percent, at $1,872 per tonne. Dealers cited short-covering and
industry buying.
    * "We were somewhat oversold, so we were always vulnerable
to a little bit of short covering," one dealer said. "And you're
seeing the demand side of things looking a little bit more
robust, which is probably supportive." 
    * Global demand figures, released as part of Barry Callebaut
earnings on Thursday, showed chocolate demand may finally be
increasing.             
    * September London cocoa         settled up 38 pounds, or
2.61 percent, at 1,492 pounds per tonne, ahead of a contract
expiry on Friday. 

 (Reporting by Renita D. Young in New York, Ana Inaova in
London; Editing by Diane Craft and Andrew Hay)
  

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