Raw sugar edges higher; arabica coffee also gains
LONDON — Raw sugar futures on ICE edged higher on Wednesday, though prices remained well below last week’s muli-year high, while arabica coffee prices also rose.
* March raw sugar rose 0.4% to 20.40 cents per lb by 1404 GMT. The market rose to its highest in almost six years at 21.18 cents last week.
* Dealers said the outlook for India’s sugar production remained a major focus, with some talk of potential downward revisions driven by reports of a sharp decline in yields in Maharashtra.
* March white sugar fell 2.55% to $557.50 a tonne, adjusting to losses in the New York-based raws markets on Tuesday. There was no trading in London-based white sugar on Tuesday because of a UK public holiday.
* March arabica coffee rose 1.65% to $1.6970 per lb.
* Dealers said the market was moving towards the upper end of this month’s range for the March contract of $1.5455 to $1.7435, with the downward slide since February appearing to have run out of steam.
* They noted the recent steady climb in exchange stocks had abated for now.
* ICE certified coffee stocks stood at 787,005 bags on Dec. 27, down slightly from a more than five month peak of 788,275 bags on Dec. 22, though there were 272,195 bags pending grading.
* March robusta coffee fell 0.3% to $1,869 a tonne, largely reflecting losses in the arabica market on Tuesday when the robusta market was shut.
* March London cocoa rose 1.1% to 2,087 pounds a tonne.
* Dealers said the market was underpinned by concerns that dry weather could reduce the size of the 2022/23 mid-crop in top producer Ivory Coast.
* March New York cocoa rose 1% to $2,659 a tonne. (Reporting by Nigel Hunt Editing by Louise Heavens and David Goodman)
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