May 15, 2018 / 12:08 PM / 5 months ago

SOFTS-Raw sugar up on short covering, Brazil weather; NY cocoa slips

LONDON, May 15 (Reuters) - Raw sugar futures rose on Tuesday, lifted by speculative short-covering in light volume and lingering worries about dry weather in top grower Brazil.

SUGAR

* July raw sugar was up 0.11 cents, or 1 percent, at 11.37 cents per lb by 1135 GMT.

* Dealers pointed to light short-covering by funds, who remain heavily bearish in the commodity.

* Participants were also monitoring weather in Brazil, where light rains are expected later this week but may not be enough to ease a recent dry spell, dealers said.

* However, gains were capped by the possibility that a recent sharp weakening in the Brazilian real will inspire a wave of producer hedging, dealers noted.

* A weaker currency improves returns in local terms and encourages Brazilian producers to hedge their supplies.

* “The Brazilian real collapsed last night to a new low, giving more ammunition for the sugar bears,” Sucden Financial’s Tom Kujawa said in a note.

* Focus also remained on ample global supplies, although there were signs low prices are filtering through to production.

* Thailand has allocated an additional 300,000 tonnes of raw sugar for ethanol production this year, amid weak prices and a large global surplus of the commodity.

* August white sugar rose $0.60, or 0.2 percent, to$321.70 a tonne.

* Ethiopia is tendering to buy up to 200,000 tonnes of white cane sugar, traders said on Tuesday.

COFFEE

* July arabica coffee fell 0.15 cents, or 0.13 percent, to $1.1745 per lb, hovering above a three-week low touched on Monday.

* Focus remained on a large crop from top grower Brazil, although the harvest is expected slightly later than usual, said Ricardo Santos, managing director at Riccoffee.

* “We’re probably going to see harvesting activity until October due to the size of the crop,” Santos said. “But one thing is for certain - there is a lot of coffee.”

* Quality also appears to be good, although the slump in global prices could inspire Brazilian growers to take less care when harvesting the crop, Santos noted.

* “At the moment, the quality of the coffee on the trees looks very good,” he said. “But the final quality depends on how farmers will process that coffee.”

* July robusta coffee fell $4, or 0.2 percent, to$1,738 a tonne.

COCOA

* July New York cocoa fell $18, or 0.7 percent, to$2,761 a tonne, weighed by a stronger dollar.

* July London cocoa fell 5 pounds, or 0.3 percent, to 1,922 pounds a tonne. (Reporting by Ana Ionova)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below