SOFTS-Coffee grows as funds grow, roasters buy dips; sweeten


NOTew throughout, updates with price movement and commentary

NEW YORK/LONDON, March 8 (Reuters)Coffee futures on ICE rose sharply on Tuesday as investors and roasters took advantage of recent market weakness to buy contracts.

Raw sugar futures also rose as energy markets surged.

COFFEE

* May arabica coffee KNc2 stood 8.65 cents, or 3.9%, at $2.329 a pound, posting a strong rally after hitting a 3.5-month low on Friday.

* May robusta coffee LRCc2 rose $59, or 2.9%, to $2,094 per tonne.

* Dealers said the market found support after its recent slide, with tighter supply remaining a bullish factor.

* “I think the sell off from $2.60 to $2.20 has been absurdly extended. The market has been very oversold,” a coffee broker said, adding that market fundamentals remain positive for price .

SUGAR

* Can raw sugar SBc1 rose 0.16 cents, or 0.8%, to 19.43 cents per pound.

* Dealers said the market continued to benefit from soaring global energy prices despite some doubts about whether they would incentivize Brazilian sugar mills to increase production of biofuel ethanol at the expense of sugar. WHERE

* Brazilian President Jair Bolsonaro on Monday backed measures to maintain domestic fuel prices, reducing the incentive for factories to shift production.

* “Whether sugar should be traded as a quasi-proxy for oil is debatable. The link between the two is far from automatic, given the heavy regulation of the link from Brazil,” said Tobin Gorey , a Commonwealth Bank of Australia analyst, in a note.

* May white sugar LSUc1 rose $3.00, or 0.6%, to $536.30 per tonne.

COCOA

* May New York Cocoa CCc2 was stable at $2.636 per ton.

* Dealers said the market remained supported by an expected global deficit for the current 2021/22 season, with demand picking up and production falling, particularly from second-largest producer Ghana.

* Swiss chocolatier Lindt & Spruengli LISN.S, LISP.S expects to grow revenue by 6-8% this year, mainly through price increases, and will continue its small operation in Russia.

* May London Cocoa LCCc2 rose 10 pounds, or 0.6%, to 1,768 pounds per ton.

(Reporting by Marcelo Teixeira and Nigel Hunt Editing by Shinjini Ganguli, David Goodman and Sandra Maler)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – 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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