Commodities

SOFTS-Raw sugar hits 6 week high on supply worries, soaring risk assets

Credit: REUTERS/PETER NICHOLLS

Raw sugar futures on ICE hit a six week high on Friday, nearing 17 cents per lb as demand for higher risk assets like the sweetener soared following upbeat economic data from China and the United States, and as supply worries lingered. [MKTS/GLOB] [O/R]

Updates prices, adds details

LONDON, April 16 (Reuters) - Raw sugar futures on ICE hit a six week high on Friday, nearing 17 cents per lb as demand for higher risk assets like the sweetener soared following upbeat economic data from China and the United States, and as supply worries lingered. MKTS/GLOBO/R

SUGAR

* May raw sugar SBc1 edged up 0.2% to 16.43 cents per lb​ by 1445 GMT, having hit its highest since early March at 16.58.

* The sweetener is heading for gains of more than 6% this week on the back of a more positive macro-economic backdrop and worries that sugar production in Brazil will struggle to reach the previously predicted 36 million tonnes.

* Dealers warned, however, that the rally is largely sentiment-driven because the Brazilian harvest fears have been around for some time and the market has plenty of supply coming out of India.

* August white sugar LSUc1 ​was flat at $456.50 a tonne.

* A total of 129,150 tonnes of white sugar has been tendered against the May contract on ICE Futures Europe, exchange data showed.

* Pakistan's (TCP) state agency has issued an international tender to purchase 50,000 tonnes of white sugar, European traders said.

COFFEE

* May arabica coffee KCc1 fell 1.1% to $1.3125 per lb, having earlier hit its highest in a month.

* Indicating improved demand, green coffee stocks at ports in the United States fell for a third consecutive month to the lowest in more than five years, the Green Coffee Association said. .

* Arabica is being underpinned by a looming deficit as Brazil enters an off-year in its biennial production cycle, though analysts say much of the deficit is priced in and rising ICE exchange stocks are capping gains.

* May robusta coffee LRCc1 fell 0.5% to $1,356 a tonne.

COCOA

* May New York cocoa CCc1 slipped 0.1% to $2,411 a tonne, helped by upbeat demand data.

* North American cocoa grindings, a measure of demand, rose a greater than expected 2.05% year on year in the first quarter of 2021, according to the National Confectioners Association.

* Asia's first-quarter cocoa grind rose 3.14% year on year, data from the Cocoa Association of Asia showed.

* May London cocoa LCCc1 ​fell 0.6% to 1,597 pounds a tonne, heading back towards a five-month low hit on Monday.

(Reporting by Maytaal Angel. Editing by David Goodman and Mark Potter)

((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters Messaging: maytaal.angel.thomsonreuters.com@reuters.net) ))

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