Ice sugar rises, Russia drought supports

Icesugar edged higher on Monday, consolidating after last week's sharp losses and supported by drought concerns for Russia's beet crop. Arabica coffee was higher as funds remained long of the market, betting prices will continue to rise, while cocoa slipped. A heat wave in Russia has damaged sugar beet with crops dying in some regions, helping to push prices higher on Monday as Ice October raw sugar rose 0.17 cent to 18.41 cents a lb as at 1128 GMT.

The severe drought, which hit many Russian regions and slashed its grain crop, may cut beet sugar output to 3.2-3.5 million tonnes from an earlier expected record 4 million tonnes, the main Russian sugar lobby said on Monday. London October white sugar traded up $0.20 at $540.00 per tonne. Coffee markets were stronger in early trading, continuing to recover from losses last week after Ice benchmark December arabicas were unable to hold a 12-1/2 year high of over $1.80 a lb and quickly retraced to trade below $1.70 a lb. Ice benchmark December arabica traded up 0.80 cent at $1.6950 a lb. Liffe November robusta coffee was down $16 at $1,724 per tonne. Ice December cocoa traded down $28 at $3,007 per tonne. Liffe December cocoa was down 20 pounds at £2,086 a tonne.