Sugar, coffee, cocoa fall as dollar rebounds
- October white sugar fell $4.20, or 1.2%, to $354.80 a tonne.
- Dealers said coffee was correcting following a stellar rally, weighed by the stronger dollar but not by any fundamental news.
LONDON: Sugar, coffee and cocoa futures on ICE fell on Tuesday as the dollar rebounded and sentiment in the wider markets soured, with oil prices heading lower again as coronavirus infections flared up around the world.
Falling energy prices tempt cane mills in Brazil to ramp up sugar output at the expense of cane-based ethanol fuel, while a strong dollar makes dollar-priced commodities more costly for non-US investors.
SUGAR
October raw sugar slipped 0.02 cent, or 0.2%, to 11.90 cents per lb at 1123 GMT, having hit a one-month low on Friday.
Dealers said the market looks vulnerable to further weakness amid a strong dollar, though much will depend on whether funds continue cutting long positions.
Egypt is extending a ban on imports of white and raw sugar for three months in a bid to dispose of accumulated stocks in the country.
October white sugar fell $4.20, or 1.2%, to $354.80 a tonne.
COFFEE
December arabica coffee fell 4.1 cents, or 3.1%, to $1.2990 per lb?, having hit an eight-month peak on Friday.
Dealers said coffee was correcting following a stellar rally, weighed by the stronger dollar but not by any fundamental news.
They added news that a rare batch of Brazilian arabica has been certified as deliverable by ICE was not weighing on prices because the exchange had rejected far more Brazilian coffee than it had certified.
ICE arabica coffee stocks
November robusta coffee fell $13, or 0.9%, to $1,414 a tonne.
COCOA
December London cocoa was flat at 1,783 pounds per tonne, retreating from last week's three-month high.
December New York cocoa was down $37, or 1.4%, at $2,558 a tonne, having hit a six month high last week.
Comments
Comments are closed for this article.