SOFTS-White sugar hits 10-1/2 year high, coffee also climbs

LONDON, April 3 (Reuters) – White sugar futures on ICE rose to the highest level in more than 10 years on Monday, boosted by a diminishing production outlook and rising energy prices.

SUGAR

* May white sugar LSUc1 rose 1.5% to $639.90 a tonne by 1041 GMT after climbing to a 10-1/2 year high of $641.10.

* “Crop markdowns seem ubiquitous,” analyst Green Pool said in a note in which it forecast Pakistan’s production for 2022/23 would fall to about 6.6 million tonnes, down 15% year-on-year.

* India, Thailand, China and the European Union have also seen production outlooks downgraded in recent weeks.

* Higher energy prices, following a surprise announcement by OPEC+ to cut more production, were also supportive.

* May raw sugar SBc1 rose 1.3% to 22.53 cents per lb after peaking at 22.56 cents – the highest level for the front month since November 2016.

* Dealers noted funds were also extending net long positions in both raw sugar and white sugar.

COFFEE

* May robusta coffee LRCc1 rose 0.9% to $2,228 a tonne, edging back up towards last week’s 6-1/2 month high of $2,250.

* Dealers said the market had tightened with shipments from top robusta producer Vietnam running behind last year’s pace while there has also been a pick-up in demand.

* May arabica coffee KCc1 rose 2.6% to $1.7490 per pound with the market recovering some ground after the prior session’s fall to a two-month low of $1.6615.

COCOA

* May New York cocoa CCc1 fell 0.9% to $2,906 a tonne.

* Main crop cocoa arrivals at ports in top grower Ivory Coast had reached 1.779 million tonnes by March 31 since the start of the season on Oct. 1, down 4.8% from the same period last season, exporters estimated on Monday.

* May London cocoa LCCc1 fell 0.6% to 2,147 pounds a tonne.

(Reporting by Nigel Hunt; Editing by Susan Fenton)

(( nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))

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