Monday, November 28

Arabica coffee jumps nearly 5%, raw sugar gains 2%


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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.

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SUGAR

* 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.

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Brazilian leftist leader Lula

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defeated President Jair Bolsonaro in a run-off election, but the far right incumbent did not concede defeat on Sunday night.

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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.

COFFEE

* 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.

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* 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.

COCOA

* 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)



financialpost.com

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