NEW YORK/LONDON — Arabica coffee futures rose nearly 5% on ICE on Monday, while raw sugar prices gained more than 2%, as the market seemed ripe for a correction after a recent slide.
Traders digested Luiz Inacio Lula da Silva’s win in Brazil’s presidential election and remained on edge over India’s sugar export policy.
* March raw sugar settled up 0.39 cents, or 2.2%, at 17.97 cents per lb, having hit a 3-1/2-week low on Friday and closed the week 4.35% down.
Brazilian leftist leader Lula
defeated President Jair Bolsonaro in a run-off election, but the far right incumbent did not concede defeat on Sunday night.
Investors are closely watching
for signs Bolsonaro will question results, potentially fueling political tension in the world’s largest sugar and coffee exporter.
* India, a major sugar producer, has extended curbs on sugar exports by one year until October 2023, the government said, but is still expected to fix a quota this week for overseas sales.
* December white sugar rose $11.60, or 2.2%, to $527.20 a tonne.
* December arabica coffee gained 7.9 cents, or 4.7%, to $1.777 per lb after touching a 15-month low of $1.6775 on Friday.
* The contract lost 11% last week on improving crop outlook in Brazil and concerns over demand, but some dealers believed the fall was overdone and expected a price correction.
* Brazil’s currency was gaining more than 2% in the afternoon, which added support to coffee prices.
* January robusta coffee rose $4, or 0.2%, to $1,853 a tonne after dipping to a 14-month low of $1,833 on Friday.
* Coffee exports from Vietnam are estimated to have increased 10.6% year-on-year in the first 10 months of this year to 1.4 million tonnes.
* December New York cocoa rose $33, or 1.4%, to $2,335 a tonne, having settled 0.5% down on Friday.
* March London cocoa gained 24 pounds, or 1.3%, to 1,885 pounds per tonne.
* Climate42 said that excessive rainfall could spur black pod disease in Ghana, the world’s second-largest producer. (Reporting by Marcelo Teixeira and Maytaal Angel Editing by David Goodman and Maju Samuel)