LONDON: Arabica coffee futures on ICE steadied on Monday after hitting a seven-month low on concerns over the prospect of abundant supplies from Brazil.
July arabica coffee rose 0.3 cents, or 0.3%, to 96.65 cents per lb by 1457 GMT, having touched a seven-month low of 94.80 cents.
Speculators erased their net long position in ICE arabica futures in the week to May 26 to hold a basically neutral position, CFTC data showed.
There has been little sign of arabica harvest disruption from coronavirus lockdowns, though investors have become increasingly concerned about demand prospects in the expected global economic downturn.
The Brazilian real remains weak overall, tempting exporters to sell by raising the value of dollar-priced coffee in local currency terms.
July robusta coffee fell $11, or 0.9%, to $1,158 a tonne.
July raw sugar rose 0.13 cents, or 1.2%, to 11.04 cents per lb amid some optimism as countries emerge from coronavirus lockdowns.
Dealers said that sugar's price upside is capped, however, because even at current price levels it remains far more profitable for cane mills in Brazil to produce sugar rather than ethanol, a cane-based biofuel.
Speculators trimmed their net short position in ICE raw sugar in the week to May 26 to 5,381 contracts.
India, a leading sugar producer, is likely to receive above-average monsoon rainfall for a second year running in 2020.
August white sugar rose $4.60, or 1.3%, to $366.80 a tonne.
July New York cocoa was up $28, or 1.2%, at $2,482 a tonne, having hit its highest since mid-February.
Cocoa arrivals at ports in top grower Ivory Coast reached 1.851 million tonnes between Oct. 1 and May 31, exporters estimated, down 5.8% from the same period last season.
Speculators increased their net short position in ICE New York cocoa by 1,989 contracts to 16,190 contracts in the week to May 26. July London cocoa fell 10 pounds, or 0.5%, to 1,950 pounds a tonne.
Comments
Comments are closed for this article.