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Updates with closing prices and comments
LONDON, July 7 (Reuters) – Raw sugar futures on ICE rose sharply on Thursday, edging further away from a four-month low hit this week, amid stronger white sugar prices and as recession fears were seen as priced in for now.
Robusta coffee fell to the lowest in more than 10 months.
SUGAR
* October raw sugar SBc1 settled up 0.53 cent, or 2.9%, at 18.52 cents per lb, having hit a four-month low of 17.71 cents on Tuesday.
* Financial markets were positive after a report showed the U.S. jobs market was cooling off, helping sooth investor worries over a potential recession on the back of higher rates, while oil steadied. MKTS/GLOB
* Dealers said raw sugar will likely consolidate above 18 cents, helped by strength in white sugar prices, where nearby futures are trading at a premium to later dates, indicating tight supply.
* They also cited strong demand for Brazilian raws at a time when Indian exports are limited.
* In other news, Europe’s largest sugar producer Suedzucker SZUG.DE posted a rise of about 230% in quarterly earnings.
* August white sugar LSUc1 fell $0.30, or 0.1%, to $555 a tonne, having hit a more than two-week high on Wednesday.
COFFEE
* September arabica coffee KCc2 fell 0.3 cent, or 0.1%, to $2.189 per lb.
* Dealers said coffee was under pressure from a weak Brazilian real BRL=, which is near its lowest versus the dollar since late January, tempting exporters to sell by raising returns in local currency terms.
* However, they added that farmers in Brazil are reluctant to sell and able to hold out for higher prices.
* September robusta coffee LRCc2 fell 0.6% to a fresh 10-1/2-month low at $1,944 a tonne.
* Rabobank said robusta is under pressure from hefty exports from top producer Vietnam, adding it expects prices to trade between $1,800 and $2,100 in the coming month.
* Vietnam coffee exports jumped 20% in the first half.
COCOA
* September New York cocoa CCc2 settled down $2, or 0.1%, at $2,354 a tonne. It hit a one-year low of $2,275 on Tuesday.
* September London cocoa LCCc2fell 11 pounds, or 0.6%, to 1,749 pounds per tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Devika Syamnath)
((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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