May 5, 2020 / 1:06 PM / 3 months ago

SOFTS-Raw sugar, arabica coffee recover as oil, Brazilian real rally

LONDON, May 5 (Reuters) - ICE raw sugar and arabica coffee prices rose on Tuesday, with investors taking some comfort from a recovery in the Brazilian real and a rally in oil prompted by easing coronavirus lockdown restrictions in some countries.


* July raw sugar was up 0.25 cents, or 2.3%, to 10.64 cents per lb at 1234 GMT, having closed down 5.2% on Monday, erasing some of the prior week’s sharp gains.

* Oil prices jumped again on hopes for a recovery in vehicle traffic and fuel demand as some European and Asian countries along with several U.S. states began to ease coronavirus lockdowns.

* Rising energy prices tend to discourage Brazilian cane mills from ramping up sugar output at the expense of ethanol, a cane-based biofuel.

* A dealer said it remains to be seen whether easing coronavirus restrictions and crude oil production cuts will have much impact on ethanol production in Brazil, though it should at least underpin sugar around 10.50 cents.

* The Brazilian real also gained, lowering the value of dollar-priced sugar and coffee exports in local currency terms and discouraging selling.

* August white sugar rose $6.40, or 1.9%, to $348.50 a tonne.


* July arabica coffee rose 3.1 cents, or 2.9%, to $1.1030 per lb, having hit its lowest in nearly 1-1/2 months last week.

* July arabica may break a resistance at $1.0770 per lb, and rise towards $1.0975, as it has found a support at $1.0420, a Reuters technical analysis shows..

* The International Coffee Organization (ICO) sees the global coffee market flipping into a 1.95 million 60kg bag surplus in the 2019/20 season due to the impact of coronavirus lockdowns, having previously forecast a 474,000 tonne deficit.

* Global coffee exports fell 3.7% in March from a year earlier to 11.06 million 60 kg bags, the ICO said.

* Costa Rican coffee exports rose 11.2% in April compared with the same month last year, official data showed. From October to April, the country’s exports were down less than 1%.

* July robusta coffee rose $16, or 1.3%, to $1,213 a tonne.


* July New York cocoa was up $25, or 1.1%, at $2,414 a tonne.

* July London cocoa rose 6 pounds, or 0.3%, to 1,915 pounds a tonne​.

* A dealer said cocoa has been underpinned of late by political risk in producing countries and an inverted or ‘backwardated’ futures market structure, which tends to indicate tight nearby supply.

* Below-average rainfall in top grower Ivory Coast last week has raised fears of a weak end to the April-to-September mid-crop.

* Cocoa arrivals at ports in Ivory Coast reached 1.753 million tonnes between Oct. 1 and May 3, exporters estimated on Monday, down 5.7% from year ago levels.

Reporting by Maytaal Angel; Editing by Emelia Sithole-Matarise

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