Soft commodities watch: Sugar price rallies for second day as dollar weakens
Soft commodity futures have been trading mixed so far in today’s session, with sugar rallying from oversold positions at six-year lows. The sweetener has received a boost from US dollar weakness and an influx of new speculator money into the commodity at the start of the new quarter. Corn futures were heading for their steepest weekly drop in two months as ample supplies and expectations of high spring planting weighed on prices.
ICE Raw sugar futures for settlement in May had climbed 2.27 percent to 12.61 cents per lb as of 14:17 BST. The contract has extended its 2.6-percent rally from the previous session after hitting an intraday low of 11.91 cents, its lowest price since January 2009, earlier during the week.
“Sugar was very much oversold, and now we’re seeing a weakening of the dollar index against a basket of currencies,” said Tracey Allen, commodity analyst with Rabobank, as cited by Reuters. At last check, front month white sugar futureswere up 1.4 percent at $363.200 per tonne.
At last check, cocoa for May delivery was trading 0.68 percent higher at £1,935.00 per tonne in London, while the US benchmark had gained $22 at $2,768.00. Cocoa futures advanced, underpinned by fund capital inflows.
Arabica coffee futures rose for a third straight session, erasing most of Monday’s four-percent drop. As of 14:21 BST, arabica futures for May settlement had advanced 2.69 percent, or over two cents, to $1.337 per lb. May robusta coffee was up 0.68 percent at $1,762.00 a tonne.
In grains, corn futures for May delivery had lost 0.71 percent, or 2.73 cents, to $3.788 a bushel on the Chicago Board of Trade as of 13:42 BST. The commodity is heading for its biggest weekly loss in two months, having shed close to five percent of its value since the turn of the week. Corn reached a two-week intraday low of $3.752 on Tuesday, after the release of a report from the US Department of Agriculture (USDA).
The Washington-based agency said that farmers were likely to sow more corn plantings this spring than analyst had expectedeven as supplies soared to their highest since 1987.The Chicago Board of Trade will be closed tomorrow for the start of the Easter holiday.
The front-month soybeans contract had declined 0.77 percent, or 7.62 cents, to $9.813 per bushel as of 13:41 BST. Despite today’s drop, the benchmark is set for a 1.43 percent gain this week on outlook for lower US planting.
CBOT wheat futures for delivery in May had declined about five cents, or 0.09 per, to 527.13 a bushel as 13:44 BST. The contract has gained about 20 cents this week for its third weekly gain in four on support from a dry spell and rising temperatures in parts of the US grain belt, threatened to curb yields of the winter crop.
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