By Paul Simao and Marguerita Choy
NEW YORK/LONDON (Reuters) – ICE raw sugar futures rallied on Wednesday after sharp declines in the previous session as oil prices and global equities rallied.
Coffee futures also closed higher.
*Raw sugar for July rose 0.26 cents, or 1.6%, to 16.69 cents a pound, after a drop yesterday of 2.1% and a low of two months of 16.19 cents seen on Monday.
* Traders say stocks in broader financial markets continue to drive sugar devaluations despite tough demand.
* “Jerome Powell’s peaceful remarks to Congress yesterday took some of the tension out of the Fed’s aggressive message last Wednesday. Positive winds for agricultural futures and risky assets in general,” said Peak Trading Research.
* São Martinho plans to change its production strategy this season, to increase ethanol production and reduce sugar production. [nL2N2O42VB]
* White sugar for August closed up $4.90, or 1.2%, to $423.60 a ton.
* Arabica coffee for September advanced 1.8 cents, or 1.2%, to $1.539 a pound, after Monday’s one-month low of $1.4905.
* Operators said stronger buying of roasters was in the plans after the recent drop in prices, despite recent concerns about next year’s crop in the biggest producer, Brazil, keeping gains in check.
* Nespresso has not yet increased prices for its capsules despite a sharp rise in Arabica beans benchmark prices, choosing to wait and see if the trend will sustain over time.
* Robusta coffee for September closed up $26, or 1.6%, to $1,623 a ton.
* Stocks of robusta at ICE have started to retreat and are currently at 152,650 tonnes, down from 157,000 on 1 June.
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