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Recasts, includes comments on market activity and closing prices
NEW YORK/LONDON, Oct 31 (Reuters) – Arabica coffee futures rose nearly 5% on ICE on Monday, while raw sugar prices gained more than 2%, as the market seemed ripe for a correction after a recent slide.
Traders digested Luiz Inacio Lula da Silva’s win in Brazil’s presidential election and remained on edge over India’s sugar export policy.
SUGAR
* March raw sugar SBc1 settled up 0.39 cents, or 2.2%, at 17.97 cents per lb, having hit a 3-1/2-week low on Friday and closed the week 4.35% down.
* Brazilian leftist leader Lula defeated President Jair Bolsonaro in a run-off election, but the far right incumbent did not concede defeat on Sunday night.
* Investors are closely watching for signs Bolsonaro will question results, potentially fuelling political tension in the world’s largest sugar and coffee exporter.
* India, a major sugar producer, has extended curbs on sugar exports by one year until October 2023, the government said, but is still expected to fix a quota this week for overseas sales.
* December white sugar LSUc1 rose $11.60, or 2.2%, to $527.20 a tonne.
COFFEE
* December arabica coffee KCc1 gained 7.9 cents, or 4.7%, to $1.777 per lb after touching a 15-month low of $1.6775 on Friday.
* The contract lost 11% last week on improving crop outlook in Brazil and concerns over demand, but some dealers believed the fall was overdone and expected a price correction.
* Brazil’s currency was gaining more than 2% in the afternoon, which added support to coffee prices.
* January robusta coffee LRCc2 rose $4, or 0.2%, to $1,853 a tonne after dipping to a 14-month low of $1,833 on Friday.
* Coffee exports from Vietnam are estimated to have increased 10.6% year-on-year in the first 10 months of this year to 1.4 million tonnes.
COCOA
* December New York cocoa CCc1 rose $33, or 1.4%, to $2,335 a tonne, having settled 0.5% down on Friday.
* March London cocoa LCCc2 gained 24 pounds, or 1.3%, to 1,885 pounds per tonne.
* Climate42 said that excessive rainfall could spur black pod disease in Ghana, the world’s second-largest producer.
(Reporting by Marcelo Teixeira and Maytaal Angel Editing by David Goodman and Maju Samuel)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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