Sugar trades near two-week high
Raw sugar futures rose 2.2% to 14.13 cents/lb, near a two-week high, supported by stalled US-Iran peace talks, stronger crude oil, and Brazil’s possible higher ethanol blending. El Niño risk and weak Indian monsoon also added support. White sugar gained 1.9%. Arabica coffee rose 1.2% on strong Brazilian real.
LONDON: Raw sugar futures on ICE rose on Tuesday, matching a two-week high set in the previous session, while cocoa and coffee also gained.
SUGAR
Raw sugar was up 2.2 percent to 14.13 cents per lb at 1415 GMT, having hit its highest since April 9 on Monday at 14.15. The contract fell to a five-year low mid-April. “The lack of a breakthrough in US-Iran peace talks is supporting crude oil, which supports sugar on ideas it will boost cane crushing for ethanol at the expense of sugar,” said broker ADMIS.
It also noted that Brazil is considering raising the ethanol blending mandate in gasoline from 30 percent to 32 percent, and that the expected arrival of El Nino as early as June could reduce Asian cane crops this year.
“The India Meteorological Department is already expecting a below-normal monsoon,” ADMIS said. White sugar rose 1.9 percent to USD 435.30 a metric ton.
COFFEE
Arabica coffee rose 1.2 percent to USD 2.9200 per lb, after hitting a one-month high of USD 3.0625 on Friday. ADMIS said arabica has been gaining support of late from a strong Brazilian currency, which deters selling of dollar-priced coffee by lowering returns in local currency terms.
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Source : Business Recorder
