LONDON: New York cocoa futures fell on Wednesday against a backdrop of ample global stocks, while raw sugar slipped as crop-friendly weather in Brazil outweighed more supportive technical conditions.
COCOA
September New York cocoa fell $14, or 0.72 percent, to $1,944 a tonne by 1201 GMT, after hitting a low of $1,921.
The market was shut for a US public holiday on Tuesday and dealers said prices sought to "catch-up" with London, which was dragged lower by data showing sharply higher port arrivals in top grower Ivory Coast.
While a large Ivorian crop in the current season has mostly been priced in already, dealers said the stronger-than-expected arrival figures had fuelled the prospect of a more persistent supply glut emerging.
"In the big picture, it just goes to reinforce what a big crop we had and how much cocoa has come through," one dealer said. "But it probably tells us to be a little bit more concerned down the road with the next crop."
Market participants were monitoring weather in the Ivory Coast, where seasonal rains improved prospects for the next crop.
September London cocoa rose 3 pounds, or 0.20 percent, to 1,531 pounds a tonne.
SUGAR
October raw sugar fell 0.14 cents, or 1.01 percent, to 13.78 cents per lb.
The contract rebounded late last week from a low of 12.74 cents but dealers said the rally appeared to have run out of steam, while expectations for a large global surplus in 2017/18 continued to weigh.
"I don't think there has been any change in the (bearish) fundamental picture," one dealer said, noting improving weather in top grower Brazil and a favourable monsoon in number two producer India.
Dealers said a run-up in energy prices in the last few days should somewhat limit the scope for significant further declines, however.
August white sugar rose $0.60, or 0.15 percent, to $412.70 a tonne, with dealers pointing to potentially tighter supplies ahead of the European Union's sugar regime change in October.
The premium over the October position hit a peak of $27.50, the widest on a continuous basis since July 16, 2012, according to Thomson Reuters data.
COFFEE
September robusta coffee was up $2, or 0.09 percent, at $2,151 a tonne.
September arabica coffee rose 1 cent, or 0.78 percent, to $1.287 per lb.
Comments
Comments are closed for this article.