Raw sugar lower; NY cocoa buoyed by firm sterling

NEW YORK/LONDON — Raw sugar futures on ICE turned lower on Monday, as the currency in top grower Brazil changed direction and fell against the US dollar, while New York cocoa was lifted higher by strength in the British pound.

March raw sugar settled down 0.08 cent, or 0.60%, at 13.17 cents per pound (/ lb) after rising to 13.47 cents.

Prices were strong for much of the session, after data released late Friday showed speculators more than tripled their bearish stance in the sweetener.

“The report suggests that the investor short position might now be close to where it has peaked a few times in the recent past,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

The spot contract remained technically oversold levels around 28 on the 14-day relative strength index, while raw sugar futures turned negative late in the session after the Brazilian real fell against the greenback, making it attractive to producers there to sell the dollar-traded commodity.

March white sugar settled down 60 cents, or 0.20%, at $352.90 per ton.

March New York cocoa settled up $7, or 0.40%, at $1,938 per ton.

Cocoa processing in Asia rose by 4.20% in the fourth quarter, from a year earlier, and by 11.20% in 2017, data from the Cocoa Association of Asia showed.

March London cocoa settled down 10 pounds, or 0.70%, at 1,370 pounds per ton, pressured by the strong pound.

March arabica coffee settled up 1.30 cent, or 1.10%, at $1.2255/ lb, pulling away from Friday’s four week low of $1.1960. March robusta coffee settled up $11, or 0.60%, at $1,767 per ton. —