Arabica coffee futures nudged down to close at the lowest level in nearly five months on Wednesday, in quiet dealings that lacked conviction after falling more than 20 percent from last month's 34-year top. US cocoa reversed to close up a shade while raw sugar corrected lower in an inside day.
The key July raw sugar contract fell 0.26 cent to close at 27.23 cents per lb. July traded in an inside day, consolidating after closing at a 2-1/2-month high for the past two days. Light switch trade as players unwound positions in July, which expires next week on June 30. Sugar futures prices are expected to stay fairly strong in the near term on worries over Brazilian output and port congestion, but prices should ease in the fourth quarter as new harvests roll in.
September arabica coffee futures dropped 0.75 cent to finish at $2.4620 per lb, the lowest settlement since January 28. ICE certified arabica coffee stocks have tumbled nearly 2 percent in June so far after the futures market fell more than 20 percent from its 34-year high reached last month, according to ICE data.
Key September cocoa futures closed up $15 at $3,041 a tonne. September briefly rose above the 200-day moving average at $3,056, a strong resistance level. Market closed higher for the fourth straight day, remaining in the range that September has been stuck in for five weeks, between around $2,870-$3,070.
Comments
Comments are closed for this article.