SOFTS-Sugar, cocoa and arabica coffee strengthen as sentiment picks up in financial markets
Uupdate with closing prices, add comments
NEW YORK / LONDON, September 22 (Reuters) – Sugar, cocoa and arabica coffee futures on ICE closed higher on Wednesday as the dollar fell and stock markets rallied after Chinese real estate giant Evergrande said it would discharge an upcoming bond coupon payment, allaying immediate fears of default. MKTS / GLOBFRX /
Robusta coffee hit a new four-year high as supplies remain tight, before plunging.
* Robusta coffee in November LRCc2 came in at $ 18, or 0.8%, at $ 2,142 a tonne, after hitting a new four-year high of $ 2,180 earlier in the session.
* Dealers noted that the robusta futures market curve is inverted from November to July 2022, indicating strong demand nearby and / or limited supplies nearby.
* Rthe oasters are jostling for replace the expensive Arabica with cheaper Robusta in their blends. There was also disruptions in the supply flows of the leading robusta producer, Vietnam.
* Arabica coffee in December KCc1 rose 1.5 cents, or 0.8%, to $ 1.8485 a pound.
* October raw sugar SBc1 was up 0.36 cents, or 1.9%, to 19.33 cents per pound.
* Traders said sugar is likely to continue consolidating in the near term, but pointed to a bearish bias in the form of weak demand nearby and better prospects for the next cane crop in India and Thailand.
* Brazilian production, however, continues to support the market.
* Sugar industry group Unica is expected to release production figures for the south-central region this week, with early market estimates pointing to a 15% drop in cane crushing for the first half of September.
* December white sugar LSUc1 rose $ 7.00, or 1.4%, to $ 508.20 a tonne.
* December New York cocoa CCc1 Came in at $ 47, or 1.8%, at $ 2,652 per tonne.
* The world cocoa market is should change from a surplus of 250,000 tonnes in 2020/21 to a deficit of 125,000 tonnes in 2021/22, mainly due to lower production in Ghana, according to a Reuters poll.
* Respondents expect New York cocoa futures CCc1 to end 2021 at $ 2,750 a tonne, and they see London cocoa futures LCCc1 ending the year at 1,880 pounds a ton.
* The Cocoa Board of Ghana (Cocobod) on Wednesday signed a syndicated loan of $ 1.5 billion, as part of an annual pre-export preparation to finance cocoa purchases and operating costs for the next one. season 2021/22.
* December London cocoa LCCc1 increased 22 pounds, or 1.2%, to 1,838 pounds per tonne.
(Report by Marcelo Teixeira Editing by Jason Neely, Paul Simao and Marguerita Choy)
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