LONDON: Raw sugar futures on ICE were lower on Monday as the market extended its retreat from last week's three-month peak while a rebound in sterling weighed on London cocoa.
SUGAR
March raw sugar was off by 0.06 cents, or 0.4 percent, at 14.32 cents per lb by 1158 GMT, with the market back on the defensive after a bout of fund short-covering that took prices to a three-month high of 14.84 cents last week.
Speculators reduced a net short position in raw sugar contracts to a six-week low on ICE Futures U.S in the week to Oct. 31, US government data showed on Friday.
Dealers said the prospect of a substantial global surplus in the 2017/18 season was helping to cap the upside potential while rains in Brazil improved the outlook for its next crop.
"There was an impressive amount of rainfall last week throughout CS (centre-south) Brazil, which alleviated the widespread dry conditions since early October 2017," Tropical Research Services said in a report on Monday.
"The change in weather conditions avoided any possible adverse effects on the agricultural development of the 2018/19 crop for the time being," the report added.
March white sugar fell by $1.80, or 0.5 percent, to $375.70 per tonne.
COCOA
December London cocoa was down 5 pounds, or 0.3 percent, at 1,554 pounds a tonne. The front month had dipped to a low of 1,536 pounds on Friday, its weakest since Oct. 17.
Dealers said prices were pressured partly by a rebound in sterling on Monday.
The market was underpinned, however, by a slow start to the main crop season in Ivory Coast and concerns that diseases such as brown rot and black pod could curb production.
March New York cocoa rose by $8, or 0.4 percent, to $2,064 a tonne.
COFFEE
January robusta coffee was down $4, or 0.2 percent, at $1,852 a tonne.
Dealers said the market was underpinned by potential crop losses in top robusta producer Vietnam.
Deadly typhoon Damrey has damaged some coffee trees in the main growing area of the world's biggest robusta exporter, Vietnam farm officials said on Sunday, but farmers said their initial assessments suggested the impact was limited.
December arabica coffee fell by 1 cent, or 0.8 percent, to $1.2295 per lb.
Comments
Comments are closed for this article.