Cocoa reaches a high of more than 2 years in NY, sugar also rises

by time news

(Reuters) – New York cocoa futures on ICE hit their highest level in more than two years on Wednesday, boosted by tight supply, while white sugar rose to a six-month high.

COCOA

* The New York Cocoa May contract closed up $57, or 2.0%, to $2,874 a tonne — the high for the first contract month since December 2020.

* Traders report supplies remain tight, with May trading at a premium of around $36 ahead of July.

* They noted that speculators were restoring long positions after a recent sell-off period.

SUGAR

*May white sugar closed up $14.10, or 2.4%, at $603.90 a tonne after setting a six-month high of $604.30.

* Traders say the market continues to be driven by lower than expected harvests in India and Thailand, while the focus will soon shift to the harvest in south-central Brazil, which is expected to start soon and accelerate in the next month.

* May raw sugar was up 0.34 cents, or 1.6%, to 21.14 cents a pound.

CAFETERIA

* May arabica fell 2.3 cents, or 1.3%, to settle at $1.78 a pound.

* Ugandan coffee exports in February were up 6% year-on-year as higher prices prompted traders to release larger volumes of stock from their warehouses, a state sector regulator said on Wednesday.

* May Robusta coffee fell $18, or 0.8%, to $2,112 a tonne.

(Reporting by Laura Sanicola and Nigel Hunt)

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