LONDON: Raw sugar prices on ICE fell on Tuesday as a short covering rally that took prices to a 1-1/2 month top last week ran out of steam, while coffee prices slid.
SUGAR
July raw sugar fell 0.14 cents or 1.1pc to 12.52 cents per lb by 1027 GMT. Prices hit a 1-1/2 month high of 12.78 on Friday, but have been heading lower this week.
Oil fell for a second day on Tuesday amid signs that global economic growth is being hit by the US-China trade war.
Falling oil can weigh on prices of ethanol, tempting Brazilian cane mills to produce more sugar and less of the biofuel. Cane is a feedstock for both products.
Sugar prices have been supported of late by dry weather in India, a top sugar grower, and by surging corn prices, though these retreated on Tuesday.
"We are currently pausing as some of the positive factors are being priced in. The market is also facing increased producer selling near 13cts/lb," said Patrice Bougault, managing director at La Trinité Asset Management.
In news, the EU's crop monitoring service MARS lowered its yield estimate for sugar beet to 75.7 t/ha from 76.5 t/ha.
August white sugar fell $1.20, or 0.4pc, to $331.90 per tonne.
COFFEE
September arabica coffee fell 0.8 cents, or 0.8pc, to 97.45 cents per lb, having hit a three-week low of 97.05 cents on Monday.
Prices plunged about 5.3pc last week amid renewed concerns about oversupply in top grower Brazil and a technical market structure that rewards sellers.
September robusta coffee fell $21, or 1.5pc, to $1,365 per tonne.
COCOA
September London cocoa fell 3 pounds, or 0.2pc, to 1,838 pounds per tonne.
The contract hit an 11-month high last Wednesday as top growers Ivory Coast and Ghana announced plans to set a floor price for cocoa.
Bad weather and crop disease have also hampered the cocoa crop in Ghana.
September New York cocoa fell $10, or 0.4pc, to $2,471 per tonne.
Comments
Comments are closed for this article.