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Sugar futures rise over 5 percent after NAFTA deal

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October 2nd, 2018

Sugar futures rose more than 5 percent on Monday as new buyers entered the market and the most recent US-Mexico-Canada trade deal boosted agricultural commodity markets, while New York cocoa plunged to its lowest in nearly nine months. March raw sugar settled up 0.41 cent, or 3.7 percent, at 11.61 cents per lb, earlier rising more than 5 percent to 11.79.

New buyers entered the market at the start of the final quarter of the year and less producers sold, according to a New York soft commodities trader. "A combination of a bullish day for agriculture markets in general because of NAFTA is helping," said Shawn Hackett, president of Hackett Financial Advisors in Boca Raton, Florida.

The United States, Canada and Mexico announced they have reached a deal on a trilateral pact to replace NAFTA. The Thomson Reuters Core Commodity Index, measuring a basket of commodities, was up more than 1 percent.

December white sugar settled up $6.70, or 2.1 percent, at $327.20 per tonne, after falling to $313.70. December New York cocoa settled down $67, or 3.3 percent, at $1,990 per tonne. Earlier in the session, prices sunk to $1,982, their lowest since January.

Speculators who drove the market higher in recent months anticipated dry weather, Hackett said. "But now it's not dry, we have good rains, and a lot of speculators are selling."

Meanwhile, Ivory Coast also said it expects 2018/19 cocoa production to remain mostly unchanged from the previous season. December London cocoa settled down 33 pounds, or 2.2 percent, at 1,463 pounds per tonne, earlier sliding to 1,455, its lowest since January.

December arabica coffee settled down 0.25 cent, or 0.2 percent, at $1.022 per lb. November robusta coffee settled up $18, or 1.2 percent, at $1,572 per tonne, reaching $1,575, its highest since Aug. 20.


Also: Coffee, Cocoa, Cotton, Orange Juice, Sugar