Sugar climbs after large October raw delivery
Sugar futures on ICE rose to a technical resistance level on Monday, in contrast to the sharply lower move in larger commodity markets amid a firm U.S. dollar, as traders covered short positions following a large delivery of raws.
The 19-market Thomson Reuters CoreCommodity Index dropped 1.2 percent to a three-week low.
SUGAR
* March raw sugar settled up 0.21 cent, or 1.5 percent, at 14.31 cents per lb, slightly paring gains after failing to breach the 40-day moving average at 14.46 cents.
* Traders said prices rose on short-covering despite a larger-than-expected delivery against October futures on Friday that was viewed by many as bearish.
* Wilmar International Ltd, Alvean and Raizen scooped up 1.1 million tonnes of raw sugar against the October contract, according to exchange data and traders.
* “The fact that producers bit back only means they have the sugar to sell later on,” said one U.S. trader, referring to Alvean and Raizen.
* “EU deregulation is bearish. White premiums don’t support tolling operations and should lead to less raw sugar demand,” he said.
* Traders also noted it was the first trading day of the fourth quarter.
* December white sugar settled up $6.90, or 1.9 percent, at $369.10 per tonne.
COFFEE
* December arabica coffee settled down 0.85 cent, or 0.7 percent, at $1.272 per lb after the spot contract fell to its weakest since July 12 at $1.253.
* The arabica market was pressured by the stronger dollar index and crop-friendly rains in Brazil, after a recent dry spell threatened to curb output in the top grower, traders said.
* November robusta coffee settled up $39, or 2 percent, at $2,007 per tonne.
COCOA
* December New York cocoa settled down $6, or 0.3 percent, at $2,037 per tonne.
* The contract traded within the wide range from the prior session, when prices rallied on speculative short-covering and industry buying.
* “The dollar is hitting New York considerably here,” said one dealer. “And there’s just a complete lack of any buying around … it has just disappeared for the time being.”
* December London cocoa settled up 13 pounds, or 0.9 percent, at 1,529 pounds per tonne, just below the session high of 1,530 pounds, the spot contract’s highest since Aug. 29.
* Top grower Ivory Coast granted fewer cocoa export licenses for the 2017/18 season, according to a document from the Coffee and Cocoa Council regulator seen by Reuters. (Reporting by Marcy Nicholson in New York and Ana Ionova in London; Editing by David Evans and James Dalgleish)