February 12, 2019 / 7:07 PM / 2 months ago

SOFTS-Raw sugar futures rise while white sugar falls

 (Recasts throughout; updates prices, comments; adds NEW YORK to
dateline)
    NEW YORK/LONDON, Feb 12 (Reuters) - Raw sugar futures on ICE
rose on Tuesday to their highest level  in a week, supported by
gains in crude oil, while March white sugar set a four-month low
ahead of the contract's expiry. 
    
    SUGAR
    * March raw sugar        settled up 0.18 cent, or 1.4
percent, at 12.85 cents per lb after touching a one-week high of
12.92.
    * Oil rose more than 2 percent as OPEC readied more supply
cuts.      
    * Higher oil prices encourage increased use of cane in
Brazil to make biofuel ethanol rather than sugar, and can
therefore curb output of the sweetener.
    * Ethanol stocks in Brazil were at 7.29 billion liters in
mid-January, their highest since 2015, according to data from
the agriculture ministry.             
    * The prospect of exports from India in coming weeks
continued to keep a lid on the market and helped keep prices
range-bound, dealers said.
    * The March contract's premium over May SBH9-K9 widened to
as much as 0.22 cent. 
    * "The Brazilian crush is going to get off to a late start,
so producers want to roll forward ... They want to hold on to
the sugar they have instead of putting it to the tape. They want
some sugar to deliver against May," one U.S. trader said.  
    * March white sugar         settled down 50 cents, or 0.2
percent, at $325.80 a tonne after setting a four-month low of
$323.40. 
    * March's discount to May had widened further ahead of the
former contract's expiry on Wednesday, indicating little
appetite to take delivery, dealers said. 
    
    COFFEE
    * March arabica coffee        settled up 0.25 cent, or 0.2
percent, at $1.0045 per lb after dropping to a five-week low of
99.85 cents the previous session.
    * Prices fell on Monday in part on weakness in the currency
of top grower Brazil, which encourages producer selling.       
    * Though the real recovered on Tuesday, erasing the previous
session's losses, arabica failed to rebound at the same pace.
    * "The real is stronger and we're still trading (arabica)
near a dollar. That's not constructive for the bulls," said one
U.S. trader. 
    * The strong pace of Brazilian exports was keeping the
market on the defensive, dealers said.             
    * Arabica prices will rise by the end of 2019 as the world
swings into deficit, a Reuters poll showed.             
    * May robusta coffee         settled up $7, or 0.5 percent,
at $1,535 per tonne.
       
    COCOA
    * May London cocoa         settled up 2 pounds, or 0.1
percent, at 1,708 pounds per tonne.
    * May New York cocoa        settled up $5, or 0.2 percent,
at $2,270 per tonne.

 (Reporting by Ayenat Mersie in New York and Nigel Hunt in
London
Editing by Mark Heinrich and Matthew Lewis)
  
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