Back Sep 13, 2024

Sugar prices rise as Brazil's output falls; robusta coffee also gains

 - Sugar prices on ICE rose on Thursday following negative production data from Brazil, while robusta coffee futures closed up for the fourth consecutive session.


SUGAR

* October raw sugar SBc1 ​settled up 0.34 cent, or 1.8%, at 19.07 cents per lb.

Dealers said negative production data out of Brazil, the top global producer, boosted prices.

Sugar output in Brazil fell 6% late in August to3.26 million metric tons as mills reduced the amount of sugarcane they earmark for sugar production, data fromindustry group UNICA showed.

Brokers said fires on some 230,000 hectares of cane plantations in Brazil will likely cut yields, reducing sugar production.

* October white sugar LSUc1 rose 2.1% to $540.10 a ton.

French sugar maker Cristal Union expects its 2024 sugar beet yield to reach the five-year average, it said.


COFFEE

* November robusta coffee LRCc2 settled up $69, or 1.4%, at $5,077 a ton, heading back towards the 16-year peak of $5,180 on Aug. 30.

* Robusta remains boosted by tight supplies, with all eyes on the coming crop in Vietnam, the top producer.

* Coffee prices in Vietnam rose slightly this week, with coffee crops unharmed by typhoon Yagi and trading expected to remain subdued until the harvest next month.

* Flooding will return to Vietnam's coffee regions throughout the next one to two weeks in a negative outlook for the budding crop, according to LSEG weather analysts.

* December arabica coffee KCc2 rose 1.1% to $2.494 per lb.


COCOA

* December New York cocoa CCc2 settled down $140, or 1.8%, to $7,588 a ton, having surged by 6.3% on Wednesday.

* The global cocoa stocks-to-grinding ratio has dropped to its lowest reading in almost 50 years amid a steep decline in output, but production could recover from next month, the International Cocoa Organization (ICCO) told Reuters.

* Aside from the expected crop recovery in the 2024/25 (October-September) season, cocoa is also under pressure from signs of weakening demand. Ivory Coast's cocoa grind fell 11.1% on a year-on-year basis inAugust, data showed.

* Wet spells might delay cocoa harvesting across West Africa's cocoa belt over the next week, LSEG weather analysts said.

* December London cocoa LCCc2 ​fell 0.8% to 5,312 pounds per ton.


Source: XM

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