The futures contracts sugar Crude prices on ICE rose on Wednesday, with the market still receiving support from tight short-term supplies, while coffee prices also firmed.
Sugar
October raw sugar rose 0.1 cent, or 0.5%, to 18.29 cents dollar per pound after hitting a two-month high of 18.75 cents on Monday.
The October contract, which expires on Friday, last traded at a 0.55 cent premium to March, indicating a shortage of deliverable supplies.
Dealers said that while a global sugar surplus is widely forecast for the 2022/23 (October/September) season, supply is expected to be tight at the start of that period.
“The surplus will only be realized after the next crop in the center-south of the Brazil is in full swing,” trading Sucden said in a monthly report, adding that this would be in May or June 2023.
December white sugar fell 0.25% to $527 a tonne.
Coffee
O coffee December Arabica rose 4.35 cents, or 1.9%, to $2,287 a lb.
Traders said the support comes from low inventories on the ICE exchange and recent downward revisions to this year’s crop in the biggest producer, Brazil, despite favorable rains that are boosting the flowering period.
ICE-certified Arabica inventories fell on 28 September to 444,699 bags, the lowest level in 23 years.
November robusta coffee rose $28, or 1.3%, to $2,208 a tonne.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
