LONDON: Arabica coffee futures on ICE were lower on Monday as the market suffered a setback after its recent strong advance to a more than four-year high, while raw sugar edged higher.
July arabica coffee was down 2.45 cents, or 1.6%, at $1.5045 per lb by 1416 GMT, slipping back after climbing to a peak of $1.5540 last week, its highest since January 2017.
Dealers said a short-term setback was not unexpected given the magnitude of recent gains but fundamentals remained supportive, with supplies set to tighten in coming months as production in Brazil declines.
Fitch Solutions said in a report that it was forecasting a global coffee deficit of 6.8 million 60-kg bags in the 2021/22 season, the largest since 2009/10, while adding a lacklustre demand outlook in some key markets would ultimately keep a cap on prices.
July robusta coffee fell by $14, or 0.9%, to $1,525 a tonne.
July raw sugar rose by 0.01 cents, or 0.1%, to 17.50 cents per lb, underpinned by concerns about drier-than-normal weather in top exporter Brazil.
“The market’s focus is still firmly on dry weather in CS (Centre-South) Brazil, with a few funds licking their lips in anticipation of seeing some producers forced to buy back short hedges,” analyst Green Pool said in a weekly note.
August white sugar rose by $1.10, or 0.2%, to $465.80 a tonne.
July London cocoa rose by 6 pounds, or 0.4%, to 1,651 pounds a tonne.
Below average rainfall and hot weather last week in most of Ivory Coast’s cocoa-growing regions could reduce the quality and size of the April-to-September mid-crop, farmers said on Monday. July New York cocoa rose by $27, or 1.1%, to $2,490 a tonne.—Reuters
Comments
Comments are closed for this article.