SOFTS-Sugar, coffee steady with focus on Brazil weatherhttp://af.reuters.com/article/commoditiesNews/idAFL8N1951PD
June 14, 2016 at 1:32 PM
* Harvest weather returns to Brazil's sugar regions
* Weak pound supports London cocoa
By David Brough
LONDON, June 13 (Reuters) - Raw sugar futures on ICE held
steady on Monday near a 2-1/2-year peak with dealers focused on
improving harvest weather in Brazil, while arabica coffee was
little changed as worries over frost risks eased.
A weakening pound, pressured by concerns over the coming
British vote on EU membership, gave support to London cocoa.
Raw sugar steadied, with a focus on improving conditions for
the cane crush in centre-south Brazil.
"The weather across Brazil's centre-south has improved
markedly over the past few days as dry weather returns across
the region allowing the crush to push into top gear again and
port loadings to get back to normal," a broker said.
Dealers noted that speculators again boosted the record net
long position in raw sugar contracts on ICE they have held since
early May in the week ended June 7, according to U.S. data.
"With a massive (and still growing) fund and spec position
in sugar currently, we would have seemed set for a correction
shortly, but this pesky thing called frost has reared its
head," Green Pool Commodities said in a weekly report.
Green Pool was referring to a forecast last week for
isolated frost in Brazil, which supported raw sugar futures, and
drove a rally in arabica coffee.
July raw sugar was up 0.04 cent, or 0.2 percent, at
19.74 cents cents per lb at 1000 GMT, just below Thursday's high
of 19.92 cents last reached in October 2013.
August white sugar was up 40 cents, or 0.08 percent,
at $529.40 per tonne.
Arabica coffee futures dipped slightly, moving further away
from Thursday's 13-month high, pressured by a weaker oil market,
with worries over a possible impact from frost on the Brazilian
arabica crop receding.
Traders said the risk of frost was largely worked in to
July arabica coffee was down 0.3 cent, or 0.2
percent, at $1.3665 per lb, well below the 13-month peak of
$1.45 on Thursday, when forecasts for frost in isolated parts of
Brazil caused record futures volume.
July robusta was down $1, or 0.06 percent, at $1,642
per tonne, underpinned by a very poor crop in Brazil due to
London cocoa prices were higher, supported by weakness of
the pound on concerns that Britons might vote to leave the
September London cocoa was up 21 pounds, or 0.9
percent, at 2,284 pounds per tonne while September New York
cocoa was off $18, or 0.6 percent, at $3,081 per tonne.
(Editing by Adrian Croft)
November 2, 2017
The global sugar market is poised for a surplus of 9.80 million tonnes 2017/18, Australia-based analyst Green Pool said on Tuesday, amid stronger production and sluggish consumption growth.Read More
November 1, 2017
World sugar dynamics are the “worst” - for bulls – in at least 12 years, Green Pool said, hiking its estimate of the global output surplus, and hinting at the potential for further growth in stocks “into 2018-19 and perhaps beyond”.Read More
August 24, 2017
The global sugar surplus is expanding as Brazil, Thailand and the European Union drive world production to record, according to Green Pool Commodity Specialists. Supplies will outpace demand by 7.1 million metric tons in the 2017-18 season that starts in October in most countries, a 29 percent increase from a May forecast.Read More
July 3, 2017
Green Pool highlighted the threat to sugar consumption from the likes of health concerns and rival sweeteners as it raised by 837,000 tonnes its forecast for the looming world sugar production surplus. The Australia-based sugar consultancy revised up to 5.55m tonnes its forecast for the global output surplus in 2017-18, taking it to the largest since 2013-14.Read More
May 24, 2017
It’s not this year’s price crash that haunts the $150 billion sugar industry. It’s the fear of worse to come. Raw sugar’s 16 percent drop ranks it bottom of the 22 raw materials on the Bloomberg Commodity Index. Shocks to demand in top consumer India and prospects of more European supply are helping shift the market to a surplus, hurting prices. Yet beyond such market dampeners, hang darker clouds. After decades of stable demand growth, almost doubling per person since 1960, the world is heading for a tipping point as shoppers turn against the cola and candy blamed for an obesity epidemic in the rich world. At the same time, sugar has to compete with cheap syrups increasingly used in processed food. "Growth is not what it’s been," Tom McNeill, managing director of Green Pool, said in an interview. "There is undoubtedly a move by global bottlers and by a lot of global food manufacturers to reduce the sugar content in their products."Read More
May 24, 2017
The "war on sugar" being waged by governments and consumers to combat public health emergencies like diabetes is slowing growth in global demand, which along with other factors could signal a fundamental shift in consumption ahead. Consumption may grow at its slowest pace in seven years in 2017/18, according to analyst group Platts Kingsman. It forecasts a rise of 1.04 percent, nearly half the average growth of about 2 percent per year over the last decade. "Consumption is generally stagnating in developed countries," Tom McNeill, director at commodity analyst group Green Pool, told Reuters.Read More
May 9, 2017
Global sugar exports will exceed demand this season and the next as India brings in less than expected and the European Union boosts output, according to Tropical Research Services, which advises hedge funds. Exports will beat import demand every quarter through September 2018, TRS estimates. The trade-flow surplus will total 398,000 metric tons in the third quarter, reversing a previous forecast for a shortage of more than double that amount, said Sean Diffley, the firm’s head of sugar and ethanol research.Read More
May 5, 2017
HOME COMMODITIES COMPANIES MARKETS OPINION DATA CALENDAR SUBSCRIBE Thurs 11th May 2017 PRINTABLE VERSION EMAIL TO A FRIEND RSS FEEDS 13:57 UK, 5th May 2017, by William Clarke Green Pool trims sugar deficit forecast, a touch... Sugar analyst Green Pool only slightly trimmed its forecast for a hefty sugar surplus next season, as consumption grows only sluggishly despite easing sugar prices. "Consumption is a major issue for sugar, with global consumption growing only slowly," Green Pool said. "Some growth is being seen in developing countries, while consumption is actually falling in some developed countries."Read More