Raw sugar falls to nearly 2-month low; coffee loses 2.5pc
- Arabica has been easing off a 4-1/2-year high touched this month with the return of rains in top arabica producer Brazil and coffee again flowing to ports in No. 2 producer Colombia.
NEW YORK/LONDON: Raw sugar futures on ICE hit their lowest in nearly two months on Thursday as the dollar rallied and equities and other commodities slumped after the U.S. Federal Reserve signalled it might raise interest rates at a faster pace than originally expected.
SUGAR
July raw sugar?? settled down 0.49 cent, or 2.9pc, at 16.55 cents per lb, having hit its lowest since April 20 at 16.52 cents earlier in the session.
Dealers said sugar has been caught up in the Fed-inspired sell-off but should find support at current levels from end users. They noted, however, that funds, who still hold a large long position, have little appetite to buy at the moment.
"The immediate reaction is one thing, but with no rate hike expected until 2023, for now, the question is how will the market react in the medium term," said a U.S.-based sugar broker.
Archer Consulting said Brazilian mills hedged more than 1 million tonnes of 2022/23 sugar on ICE in May, taking total forward sales of next year's crop to 20.9pc.
August white sugar settled down $12.00, or 2.7pc, at $425.00 a tonne, having hit its lowest in more than two months at $422.
COFFEE
September arabica coffee settled down 3.85 cents, or 2.5pc, at $1.516 per lb, having hit its lowest since May 24 at $1.5080 earlier.
Arabica has been easing off a 4-1/2-year high touched this month with the return of rains in top arabica producer Brazil and coffee again flowing to ports in No. 2 producer Colombia.
The harvest in Brazil reached 34pc by June 15, consultancy Safras & Mercado said, a similar pace to last year but lagging the 5-year average of 36pc for this time of the year.
Investment bank Itau BBA reaffirmed its view of a 30pc reduction in Brazil's arabica crop this year, and said it is possible that some farmers would not be able to deliver coffee sold months before.
September robusta coffee settled down $31, or 1.9pc, at $1,598 a tonne.
COCOA
September London cocoa settled up 4 pounds, or 0.2pc, to 1,628 pounds per tonne?, one of the rare commodities futures gaining on Thursday.
September New York cocoa??? settled down $41, or 1.7pc, to $2,381 a tonne.
Comments
Comments are closed for this article.