LONDON: Raw sugar futures on the ICE exchange fell on Thursday, heading back towards a recent five-week low, as energy prices continued to decline, while coffee and cocoa prices steadied.
SUGAR
Raw sugar fell 1.9 percent to 18.13 cents per lb at 1217 GMT, after setting a five-week low of 17.92 cents on Tuesday. Sugar is under pressure near-term from poor physical demand and weak energy prices, which tend to prompt cane mills to produce more sugar and less ethanol, a cane-based biofuel.
Broker ADMIS noted, however, that the tight global supply picture has not gone away, with top grower Brazil’s production sharply lower this year due to excess El-Nino-linked rains.
Sugar production in Brazil’s key center-south region fell 0.7 percent in the second half of October from a year earlier to 2.08 million metric tons, according to data released by the Agriculture Ministry. White sugar rose 1.2 percent to USD505.70 a metric ton.
COFFEE
Arabica coffee rose 0.4 percent to USD2.6560 per lb, consolidating after hitting a six-week low of USD2.6215 on Wednesday. Arabica is under overall pressure from improving supply prospects. Top grower Brazil exported 5.02 million bags of green coffee in October, a nearly 31 percent year-on-year rise and the highest on record, industry group Cecafe said.
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