Sugar rises after selloff, coffee eases on firm dollar
Raw sugar futures rose on Thursday in a technical correction after a selloff in the prior session, while coffee and New York cocoa came under pressure from a stronger dollar.
Upside in raw sugar futures was limited by a brisk cane crush in centre-south Brazil. “I am expecting the crush to continue at a very good pace,” Carlos Mera, a senior commodity analyst with Rabobank, said. ICE October raw sugar was up 0.23 cent, or 1.2 percent, at 19.87 cents per lb by 1105 GMT, having fallen 4 percent on Wednesday to 19.57 cents.
The front month had risen to a one-month high of 20.92 cents on Monday, with the psychological 21-cent level forming technical resistance. October white sugar was up $7.20, or 1.4 percent, at $537.70 per tonne. Arabica coffee prices fell with December down 0.55 cent, or 0.4 percent, at $1.4180 per lb.
September robusta coffee was down $5, or 0.3 percent, at $1,813 per tonne. “If we don’t see risks of frost (in Brazil) next week, I think the funds will get out of arabica,” Mera said. Broker Marex Spectron on Thursday forecast there would be a global coffee deficit of 1.0 million (60-kg) bags in the 2016/17 season compared with a deficit of 2.4 million bags in 2015/16.
Trading on Asia’s robusta coffee market has been slow in the past week due to lower stocks in producing nations, thin buying demand and a decline in global prices, traders said on Thursday. December New York cocoa was down $13, or 0.4 percent, at $2,992 per tonne, while December London cocoa was down 8 pounds, or 0.3 percent, at 2,377 pounds per tonne.
Global commodity trader Cargill Inc CARG.UL on Wednesday said it turned in a quarterly net profit, boosted by special gains that offset poor results from trading and oilseed processing.