LONDON: Sugar futures on ICE slipped on Friday after hitting a more than one-year peak in the prior session on news that No. 2 producer India will allow duty-free sugar imports.
SUGAR
Raw sugar fell 0.8percent to 17.38 cents per lb at 1220 GMT, having hit a more than one-year high of 18.26 cents on Thursday. India’s government will allow duty-free imports of 1 million metric tons of raw sugar between now and October 31 to try to reduce soaring local prices.
The move comes as the market also contends with crop problems in Europe due to drought, a drop in Brazilian production due to too much rain in June, and the threat of drier conditions in Asia thanks to the El Nino weather pattern.
Still, broker and consultant Michael McDougall said after failing to hold the move above 18 cents, the market looks like it prefers to await the weekly commitment of traders report before making any big decisions.
White sugar fell 0.5percent to USD537.70 a metric ton, having hit its highest since March 2025 at USD566.80 on Thursday.
COCOA
London cocoa fell 1.3percent to £4,280 per ton, but was heading for 2percent gains for the week. Ivory Coast’s cocoa regulator said the world’s top cocoa producer is ready for new EU anti-deforestation rules, but local exporters and buyers warn a compliance system due to launch next month could disrupt bean purchases and exports.
Exporters and buyers across West Africa are struggling to comply with the law, and industry experts say this could squeeze the region’s shipments to Europe, leading to a potential drawdown in ICE inventories. New York cocoa fell 1percent to USD6,002 a ton.
COFFEE
Robusta coffee fell 2.4percent to USD3,635 a ton. The market is pricing in rising exchange inventories, and is also keeping a close watch on the crop in top robusta grower Vietnam, which for now appears to be developing well.
Arabica coffee fell 1.5percent to USD3.2475 per lb, retreating further off a one-month high set on Wednesday. Colombia’s coffee harvest has dodged the impact of the 7.4-magnitude quake that hit the country earlier this month, with coffee growers viewing El Nino as the bigger threat, the head of the National Coffee Growers Federation said.
Comments