Sugar dips, coffee rises as producers hold stocks [Khaleej Times (United Arab Emirates)]Al Bawaba Ltd.
LONDON - ICE sugar futures dipped and coffee inched up on Thursday, underpinned by a weaker dollar, with many Brazilian arabica producers sidelined waiting for prices to rise further.
ICE cocoa was little changed in modest volume with a focus on development of West African main crops.
Expectations of a big global sugar surplus and a rapid cane crush in Brazil weighed on sugar futures prices, dealers said.
ICE March raw sugar futures were down 0.2 cent or 1 percent at 20.17 cents per lb at 1407 GMT.
"We seem destined for a sideways session with resistance expected around the 20.87 cents area and support above 20.08 cents," said Thomas Kujawa of brokerage Sucden Financial, referring to the second month contract.
The ICE October contract will expire on Friday.
China's sugar output will reach 14 million tonnes in the 2012/13 grinding season, a rise of about 22 percent from a year earlier, as farmers increased planting areas and the crop benefited from good weather, Liu Hande, vice chairman of the China Sugar Association, said on Thursday.
India has allowed millers to sell 4 million tonnes of non-levy sugar in October and November, a government statement said on Thursday, higher than the average monthly allocation of around 1.7 million tonnes as the country heads into the peak festive season.
December white sugar on Liffe rose 40 cents or 0.07 percent to $570.70 per tonne in low volume of 740 lots.
British sweeteners and starches maker Tate & Lyle Plc expects a small rise in full-year profits although first-half profits will be flat due to one-off factors.
ICE December arabica coffee futures were up 2.5 cent or 1.5 percent at $1.7195 per lb.
"Brazilian producers are holding back stocks (of arabicas), waiting for prices to increase," said Birgit Wippler, soft commodities analyst with F.O. Licht in Germany.
Vietnam's coffee exports in the 2011/2012 crop year ending this month are estimated to have reached a record high 1.6 million tonnes, or 26.7 million bags, up 24 percent from a year ago, the government said on Thursday.
November robusta coffee futures firmed $24 or 1.1 percent to $2,154 a tonne in light volume of 3,598 lots.
"There are reports that supplies of old crop beans (from Vietnam) are tight," Wippler said.
Cocoa grind data in October
ICE December cocoa futures were down $6 or 0.2 percent at $2,463 per tonne.
Jack Pollard, technical analyst with Sucden Financial Research, said he saw resistance in ICE second-month cocoa at $2,539, and immediate support near $2,452.
Dealers said they anticipated weak third-quarter European cocoa grind figures, a measure of demand, next month.
"I think there has been a setback in consumption. There's going to be a down figure (in Q3 grind)," one London-based cocoa futures broker said.
Eric Sivry, head of agri-options brokerage at Marex Spectron, said, "The consensus is for a number sharply down when compared to the previous year."
Light rainfall and abundant sunshine across most of Ivory Coast's main cocoa regions last week will encourage healthy output as the new harvesting season opens, farmers and analysts said on Tuesday.
Liffe December cocoa was down 8 pounds or 0.5 percent at 1,589 pounds per tonne in moderate volume of 5,762 lots.