Raw sugar futures recover; coffee falls from 3-month peak
- March London cocoa settled down 33 pounds, or 1.9%, to 1,714 pounds per tonne.
- March arabica coffee settled down 1.5 cent, or 1.2%, at $1.2465 per lb.
- March raw sugar rose 0.09 cent to 14.24 cents per lb, having earlier hit a low of 14.09.
NEW YORK/LONDON: Raw sugar futures on ICE closed up on Tuesday for the first time in the last four sessions, recovering from some recent losses amid projections for lower Brazil production next season.
Arabica coffee closed down, ending a recent run that took prices to a three-month top.
SUGAR
March raw sugar rose 0.09 cent to 14.24 cents per lb, having earlier hit a low of 14.09.
Sugar reversed earlier losses amid news of likely lower production expected next season in top producer Brazil.
Dealers said sugar has been negatively impacted in recent sessions by liquidation of long positions by funds, which are dismantling a once massive bullish bet.
There is ongoing talk that India is getting closer to announcing a long-delayed sugar export subsidy.
Brazil 2020/2021 sugar output is seen at 41.8 million tonnes, up 40% from previous season, said Conab, the government food supply and statistics agency.
March white sugar rose $2.20 to $392.50 a tonne.
COFFEE
March arabica coffee settled down 1.5 cent, or 1.2%, at $1.2465 per lb, retreating from a fresh 3-month top hit earlier in the session.
The weather continues favorable to coffee fields in Brazil, with more rains expected in coming days. Farmers, however, are skeptical about a full recovery after a dryer-than-normal period earlier this year that hurt flowering.
Rabobank sees production in the country falling 15% next year to 57.4 million 60-kg bags, which would take global production below expected demand in 2021-22.
March robusta coffee settled down $4, or 0.3%, at $1,372 a tonne.
COCOA
March London cocoa settled down 33 pounds, or 1.9%, to 1,714 pounds per tonne.
The pound rose but remained below Monday's peak on growing optimism about the chances of post-Brexit trade deal. A strong pound makes the sterling-priced futures contract costlier for non-British investors.
Commerzbank said prospects of the final stages of the main crop and the subsequent mid-crop in Ivory Coast have improved amid a good mix of rains and sunshine in the past few days.
March New York cocoa settled down $48, or 1.9%, to $2,541 a tonne.
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