May 12, 2020 / 12:51 PM / 19 days ago

SOFTS-Raw sugar edges up as oil recovers; coffee, cocoa fall

LONDON, May 12 (Reuters) - Raw sugar futures on ICE edged up on Tuesday as oil prices recovered on production cut pledges, though a weakness in the Brazilian real and worries over steep consumption falls amid the coronavirus pandemic kept gains in check.

Coffee and cocoa fell meanwhile.

SUGAR

* July raw sugar rose 0.04 cent, or 0.4%, to 10.16 cents per lb by 1212 GMT. The contract hit a 12-1/2-year low the week before last.

* Oil prices rose, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up amid the coronavirus crisis.

* Rising energy prices can deter cane mills in top producer Brazil from ramping up sugar output at the expense of ethanol, a cane-based biofuel.

* Commonwealth Bank of Australia noted sugar was falling back towards 10 cents, with Brazil’s demand for ethanol recovering very modestly after having halved due to coronavirus lockdowns.

* Brazil’s sugarcane association Unica is expected to release data covering the second half of April later this session, with sugar production expected to be sharply up.

* A dealer said sugar will likely remain under pressure near term, given sharp rises in Brazilian output, indications that demand has been severely impacted by lockdowns and a general consensus that the real will continue to fall.

* A weak Brazilian real raises returns for exporters selling dollar-priced sugar.

* The French farm ministry put its 2020 sugar beet area estimate at 424,000 hectares, down 5% from last year, citing the closure of four sugar production plants in France.

* August white sugar was up $2.50, or 0.7%, at $343.70 a tonne.

COFFEE

* July arabica coffee fell 1.7 cents, or 1.5%, to $109.10 per lb, reversing the previous session’s gains.

* July arabica may drop to $1.0770 per lb as it could have completed a bounce from the April 30 low of $1.0380, technical signals indicate.

* Arabica has been boosted by concerns South American growers could delay the harvest this year but against that, it has to contend with a weak real and signs Brazil remains on course to produce a large crop.

* July robusta coffee fell $10, or 0.8%, to $1,188 a tonne.

COCOA

* July New York cocoa was down $27, or 1.1%, at $2,436 a tonne, giving back some of Monday’s gains.

* Cocoa has gained support of late from below-average rains in most of Ivory Coast’s cocoa growing regions and data showing the country’s port arrivals are trailing last season’s pace.

* July London cocoa fell 44 pounds, or 2.2%, to 1,937 pounds a tonne​.

Editing by David Evans

Nuestros Estándares:Los principios Thomson Reuters
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