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NEW YORK/LONDON, April 5 (Reuters) – White sugar futures on ICE surged to an 11-year high on Wednesday boosted by short-term supply tightness following lower-than-expected production in several countries.
SUGAR
* May white sugar LSUc1 settled up $27.10, or 4.3%, at $663.90 a tonne after setting an 11-year high of $668.50.
* Dealers said the market had tightened following lower than expected production in several countries including India, Pakistan, Thailand and China and much will now hinge on the Brazilian harvest which is under way.
* “The market will slowly turn its head away from the disappointing Asian crops to Brazil,” Rabobank said in a note.
* Brazil is expected to produce 40.3 million tonnes of sugar in the new season that started in April, the second highest amount on record, according to a report on Tuesday.
* A U.S. trader said the white sugar market appears to be going through a short squeeze, with a lack of refineds in the tape.
* May raw sugar SBc1 rose 0.48 cent, or 2.1%, to 22.95 cents per lb after peaking at 23.01 cents – the highest since October 2016.
* Indian mills have produced 30 million tonnes of sugar since the current season began on Oct. 1, down 3.3% year on year, the Indian Sugar Mills Association said on Wednesday.
COFFEE
* May robusta coffee LRCc1 settled up $60, or 2.7%, at $2,314 a tonne after setting a seven-month high of $2,320.
* Dealers said funds have been increasing a net long position against the backdrop on strong demand with some roasters incorporating more of the cheaper robusta beans in blends at the expense of arabica.
* They noted, however, that the recent narrowing in the discount for robusta coffee would likely slow the shift.
COCOA
* May New York cocoa CCc1 fell $11, or 0.4%, to $2,903 a tonne.
* Barry Callebaut BARN.S reported on Wednesday that overall chocolate volume had fallen by 3.6% in the six months to Feb. 28 with declines in EMEA (3.7%) and the Americas (4.4%) more than outweighing a small rise in Asia (0.3%).
* May London cocoa LCCc1 rose 31 pounds, or 1.4%, to 2,169 pounds per tonne boosted by a weaker pound.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan, Shailesh Kuber and Nick Macfie)
((marcelo.teixeira@reuters.com; +1 332 220 8062))
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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