Raw sugar turns lower after rally, coffee consolidates
- October raw sugar settled down 0.11 cents, or 0.9%, at 12.01 cents per lb, after peaking at 12.27 cents, the highest level for the front month since July 8.
- October white sugar settled down $2.30, or 0.6%, at $362.90 a tonne.
NEW YORK/LONDON: Raw sugar futures closed down on ICE on Tuesday, with profit- taking after a rally linked to a pick-up in physical demand and the possibility that adverse weather could curb production in major exporter Thailand.
SUGAR
October raw sugar settled down 0.11 cents, or 0.9%, at 12.01 cents per lb, after peaking at 12.27 cents, the highest level for the front month since July 8.
Dealers said demand from China had been strong in the past few weeks and potential buying from Pakistan also boosted sentiment.
A US-based broker said speculators probably joined commercials in the buying frenzy on Monday, boosting their long position in raw sugar.
Drought in Thailand is also a supportive factor, denting the production outlook in the world's second-largest sugar exporter after Brazil.
October white sugar settled down $2.30, or 0.6%, at $362.90 a tonne.
COFFEE
September arabica coffee settled down 0.75 cents, or 0.7%, at $1.0965 per lb, with the market consolidating after its recent run-up.
Commerzbank technical analyst Axel Rudolph said in a note that the market was finally building a base and price charts were pointing towards further gains.
"We will retain our now bullish forecast while the price of coffee remains above the 55-day moving average at 101.73 (cents per lb) on a daily chart closing basis," he said.
Harvesting in top producer Brazil continues with no major issues, Sao Paulo-based research body Cepea said on Tuesday, adding beans show very good quality.
September robusta coffee settled down $10, or 0.7%, at $1,336 a tonne.
COCOA
December London cocoa settled up 6 pounds, or 0.4%, to 1,582 pounds per tonne.
Dealers continued to monitor the development of the main crop in top grower Ivory Coast, with production seen rising in the 2020/21 season that starts on Oct. 1.
Rainfall last week in most of Ivory Coast's main cocoa growing regions was below average, but growing conditions are still good enough to ensure the steady development of the October-to-March main crop, farmers said on Monday.
September New York cocoa settled up $5, or 0.2%, to $2,291 a tonne.
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