LONDON: Raw sugar futures on ICE fell on Tuesday, weighed partly by the weakness of the currency of top producer Brazil, while arabica coffee prices were also lower.
A weak Brazilian real can encourage producers to sell dollar-priced sugar and arabica coffee by raising returns in local currency terms.
SUGAR
May raw sugar was down 0.2% at 18.91 cents per lb by 1433 GMT, slipping back down towards the prior session’s four-week low of 18.87 cents.
Dealers said gains in crude oil helped to limit losses.
August white sugar fell 0.02% to $521 a tonne.
Sugar prices in the United States, which hit an 11-year high last year, could reach a new peak in coming months as the market remains well supported and beet planted area is seen falling as some farmers switch to soybeans.
COFFEE
July arabica coffee fell 0.4% to $2.1985 per lb, with the market remaining on the defensive after falling by nearly 3% on Monday.
Dealers said coffee had also been weighed by global growth concerns with the outlook for consumption already dented by the conflict in Ukraine.
July robusta coffee fell 0.3% to $2,059 a tonne.
COCOA
July New York cocoa fell 0.1% to $2,483 a tonne after setting an eight-week low of $2,478.
Dealers said lower first-quarter cocoa grinds in North America and Asia had heightened concerns about weak demand.
July London cocoa rose 0.4% to 1,757 pounds a tonne.
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