White sugar turns lower after setting 10-year high


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NEW YORK/LONDON — White sugar futures on ICE rose to a 10-year high on Tuesday before turning lower and closing down, in choppy conditions ahead of the expiry of the October contract later this week.

SUGAR

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* October white sugar, which expires on Thursday, fell $6.70, or 1.1%, at $606.30 a tonne after peaking at a 10-year high of $620.30.

* Dealers said supplies of white sugar were currently tight with stocks depleted in some major importing countries, exports from India remaining low while refining costs have also risen in recent months.

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* Open interest on the October contract stood at 10,143 lots, as of Sept. 12, equating to 507,150 tonnes.

* October raw sugar settled up 0.03 cent, or 0.2%, at 18.38 cents per lb.

* Dealers noted sugar production in Centre-South Brazil was slightly stronger than expected in the second half of August at 3.13 million tonnes, up 5.77% from a year earlier.

* Brazilian President Jair Bolsonaro’s move to sharply cut taxes on fuels, particularly gasoline, to boost his re-election chances has squeezed ethanol’s profit margins and is expected to lead mills to shun the biofuel and focus strongly on sugar.

COFFEE

* December arabica coffee settled down 4.05 cents, or 1.8%, at $2.207 per lb, extending the market’s retreat from a six-month peak of $2.4295 set on Aug. 25.

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* Dealers said an improved outlook for crops in Brazil had put the market on the defensive with forecasts for a return of rains in the later part of September seen spurring the key flowering period.

* Sales by branded coffee shops in the United States increased 10% in the 12 months to June 2022 to reach $45.8 billion, a value that is 96% of its pre-pandemic sales.

* November robusta coffee fell $24, or 1.1%, at $2,239 a tonne.

COCOA

* December New York cocoa ​​settled down $36, or 1.5%, to $2,350 a tonne.

* Ivory Coast has authorized 102 companies and cooperatives to buy and export cocoa and coffee in the 2022/23 season.

* December London cocoa fell 5 pounds, or 0.3%, to 1,838 pounds per tonne​​. (Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan, Andrea Ricci and Marguerita Choy)

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