Raw sugar futures on ICE eased on Wednesday with the market consolidating after its recent run-up, while arabica coffee dipped to a more than one-month low and cocoa also weakened. March raw sugar fell 0.05 cent to settle at 12.41 cents per lb.
Sugar continued to get background support from fund short-covering and an expected tightening in supplies in coming months but last week's rally has fizzled partly thanks to producer and trade selling, and excess stocks. “The market seems to have entered a phase of consolidation, but the recent rally should not be questioned," Agritel said in a market report noting expectations for a global deficit in 2019/20.
December white sugar ended the session up $1.10, or 0.3%, at $342.70 a tonne.
Mills in Brazil's center-south region increased cane crushing and sugar production in the second half of September, as drier-than-normal weather allowed for a quicker harvesting pace, cane industry group Unica said.
Volatility in sugar markets has been subdued after the October contract's expiry, and sugar has largely been caught in broad macro moves in the energy complex, dealers said.
December arabica coffee fell 0.25 cent, or 0.3%, to settle at 95.45 cents per lb, having hit 95.05 cents, the lowest since September 6.
Coffee remains under pressure from excess supplies following two seasons of surplus production.
“The general movement is sideways between 90 and 110 cents. Everyone is well aware the market is oversupplied… (but) below 90 it becomes difficult even for Brazilians to make money so the price levels out," said a dealer.
November robusta coffee ended the session down $1, or 0.1%, at $1,258 a tonne, having matched Monday's nine-year low of $1,250.
December New York cocoa settled down $41, or 1.7%, at $2,407 a tonne, extending the market's retreat after a strong advance in September and early October.
Concerns about crop quality in top grower Ivory Coast are lingering due to rain, though there is a generally favourable outlook for production.
Demand worries and fluctuations in currency markets such as the pound, which wallowed near a month low on deepening uncertainty over Brexit, have pressured cocoa, dealers said.
“A lot of us were thinking that we could get to $2,600 by year end but with this lack of demand I don't think that's going to happen now," said Peter Mooses, senior market strategist at RJO Futures.
March London cocoa settled 14 pounds, or 0.7% lower, at 1,876 pounds a tonne.