Brazil: Raw sugar rebounds on ICE from 3 1/2-week low; coffee pulls back
RIO DE JANEIRO, BRAZIL – Raw sugar futures on ICE rose on Friday, with investors encouraged to close deals after prices hit their lowest level in 3 1/2 weeks last session, while coffee retreated.
SUGAR
Raw sugar for March closed up 0.24 cents, or 1.3%, at 18.23 cents a pound, having hit its lowest level since January 10 on Thursday at 17.77 cents.
Traders said sugar will struggle to rise above 19 cents because of good crop prospects in major producers India and Thailand, as well as expectations that even top producer Brazil should recover from last year’s adverse weather.
“It remains to be seen if the bottom was reached yesterday, but there seemed to be little desire to lower prices in the short term. However, the market is still weak with funds looking elsewhere for opportunities,” said a sugar broker.
White sugar for March was up US$6, or 1.2%, at US$498.50 a ton.
COFFEE
Arabica coffee for March was down 2.05 cents, or 0.8%, at US$2.4185 a pound.
Traders said good rainfall in Brazil, the largest producer, improved the outlook for the current crop, which was severely damaged by adverse weather last year.
However, Arabica remains underpinned by the slow pace of Brazilian exports and declines in ICE-certified stocks.
ICE stocks fell again on Friday by over 23,000 bags to 1.11 million bags, heading to its lowest level in 20 years.
May robusta coffee was down US$7, or 0.3%, at US$2,213 per ton.
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