SOFTS-Raw sugar sinks as investors shun risk, India export rumour resurfaces

December 12, 2020
Reuters |

LONDON, Dec 11 (Reuters) - Raw sugar futures on ICE fell on Friday as investors shied away from risk in wider markets and speculation of an Indian export subsidy deal resurfaced, while London cocoa rallied as sterling sank on fears over a no-deal on post-Brexit trade.


* March raw sugar fell 1.3% to 14.47 cents per lb at 1632 GMT, extending the prior session’s 2% loss.

* World shares slipped and sterling skidded to its lowest in nearly a month as markets confronted the risk of Britain leaving the European Union without a trade deal.

* Dealers said renewed rumours that the Indian government is getting closer to announcing a long-delayed sugar export subsidy were weighing on prices.

* One dealer said while sugar remains ultimately rangebound despite its daily gyrations, there is growing talk that agri-commodities will gain next year amid a weakening dollar, inflation, La Nina, and strong Chinese demand.

* March white sugar fell 1.3% to $396.50 a tonne.


* March London cocoa rose 2.5% to 1,770 pounds per tonne as sterling skidded, making the sterling-priced futures contract cheaper for non-British investors.

* March New York cocoa rose 1.8% to $2,614 a tonne after dipping to its weakest since Nov. 18 on Thursday, underpinned by low ICE-certified stocks.

* The ruling party in Ghana, the world’s second-largest cocoa producer, held a one-seat lead in parliament with one race still to be decided, the election commission said, as the main opposition leader rejected the outcome.


* March arabica coffee rose 0.4% to $1.2150 per lb, having closed up more than 3% on Thursday as the Brazilian real surged.

* March robusta coffee slipped 0.3% to $1,355 a tonne.