:. Food Industry News


Coffee, Sugar Rise, Buoyed by Oil Recovery

Source: Reuters
28/10/2008

London, Oct 28 - Coffee, sugar and cocoa firmed on Tuesday, underpinned by a recovery in stock markets, firmer oil prices and a softer dollar against the euro, although concerns over a global recession capped advances.

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"There's slightly more confidence across the board in financial and commodity markets, and this is reflected in the softs," a sugar dealer said.

World stocks rose sharply on Tuesday and Wall Street looked set for solid gains as investors indulged in a burst of bargain hunting after five straight global trading sessions of steep losses.

January robustas were up $31 or 1.9 percent to $1,635 per tonne in moderate volume of 3,694 lots at 1202 GMT.

December arabicas were up 2.75 cent or 2.55 percent to $1.1050 per lb.

Sharp declines in Vietnam's domestic coffee prices, as much as 13 percent in the past week, have prompted some exporters to delay shipments until November to escape losses, traders said on Tuesday.

London cocoa futures rose on arbitrage buying, and appeared oblivious to a farmers' strike in top grower Ivory Coast, dealers said.

Benchmark ICE December cocoa rose $79 or 4 percent at $2,035 per tonne at 1206 GMT.

London March cocoa was up 30 pounds or 2.3 percent to 1,340 pounds per tonne in slim turnover of 1,906 lots.

Unlicensed cocoa buyers from neighbouring Ghana crossed into Ivory Coast to take advantage of an ongoing Ivorian cocoa strike while exporters waited for deliveries to load on ships, farmers said on Tuesday.

London white sugar futures rose in sympathy with raw sugar, aided by firmer oil prices and the softer dollar.

"Many of the commodity and financial markets are recovering at the moment," UK broker Sucden said in a daily sugar market comment. "How long this wil last is hard to say, as it appears to be a bounce in a bearish trend."

ICE March raw sugar was up 0.4 cent or 3.7 percent to 11.36 cents per lb at 1224 GMT.

London December white sugar was up $9.1 or 2.97 percent to $315.00 per tonne.

Brazil's sugar and ethanol industry plans to ask the federal government for a credit line to raise availability of loans, which the credit crunch has made scarce and expensive, producers said on Monday.



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