SOFTS-Raw sugar gains 6.9% in the week on Brazilian jellies; coffee down


Recasts, includes closing prices and comments

NEW YORK / LONDON, July 2 (Reuters)Raw sugar futures on ICE rose again on Friday to end the week with strong gains as investors await assessments of possible damage to the cane crop in Brazil from this week’s frosts.

SUGAR

* October raw sugar SBc1 closed 0.21 cents, or 1.2%, higher at 18.15 cents per pound, a day after hitting its highest level since late February. The contract gained 6.9% over the week.

* Dealers said the market remained buoyed by frosts that hit cane areas in Brazil, the main producer this week.

* “Temperatures (are) now forecast to return to normal. Any damage to the rod is done, however, and assessments will filter through over the next few days,” the Commonwealth Bank of Australia said.

* Brazil exported 2.75 million tonnes of sugar in June compared to 2.71 million a year ago, according to data.

* August white sugar LSUc1 lost $ 0.40, or 0.1%, to $ 450.30 a tonne.

COFFEE

* Arabica coffee in September KCc2 stood at 3.35 cents, or 2.1%, at $ 1.5305 a pound, after reaching its highest level since early June on Thursday. The contract lost 3.25% over the week.

* Brokers and analysts believe that most of Brazil’s coffee growing areas have been spared from frost.

* Brazil exported 174,239 tonnes of green coffee in June compared to 141,557 tonnes a year ago, according to data.

* Coffee exports from Honduras, Central America’s largest exporter of arabica, climbed 28.4% in June from a year ago, data showed.

* Robusta coffee in September LRCc2 was $ 6, or 0.4%, at $ 1,707 a tonne, after peaking at $ 1,737 two and a half years earlier.

* Dealers have stated that the relatively large discount between Robusta and Arabica makes the former attractive. Robusta stocks held in ICE exchange warehouses also started to decline.

COCOA

* September New York cocoa CCc2 stood at $ 35, or 1.5%, at $ 2,319 per tonne, during the session reaching its lowest level since May 2020.

* September London cocoa LCCc2 dropped 9 pounds, or 0.6%, to 1,608 pounds per tonne.

* “Cocoa is in the doldrums as the recovery in demand will take longer to take shape given its reliance on the travel industry. We see prices stagnating on average in 2022 compared to 2021 “said Fitch Solutions in a note.

(Report by Marcelo Teixeira Editing by Kirsten Donovan, David Gregorio and Jonathan Oatis)

(([email protected]; +1 332 220 8062; Reuters messaging: [email protected]https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.




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