Raw sugar ends week below 12-cent mark; coffee also down

NEW YORK/LONDON: Raw sugar prices on ICE closed lower on Friday, below the 12-cent mark, with investors reassessing the risk that a resurgence of coronavirus infections will put more pressure on the global economy and hurt sugar demand.

Futures of robusta and arabica coffee also close down, while cocoa rose.

SUGAR

July raw sugar settled down 0.07 cents, or 0.6%, at 11.87 cents per lb, having hit a low of 11.60 earlier in the session.

Dealers said escalating concerns about the economic outlook were always likely to prompt a drop in sugar.

"The market will, possibly, try to consolidate at around current levels with, perhaps, a new range in place with support at 11.50 but resistance above 12.40," said a London-based broker.

"After getting used to a more positive slant with sugar following the recovery of crude oil to the $40 a barrel level, now we have to see if crude has topped out or is just correcting after its 134.4% rally," said a New York-based broker.

August white sugar settled down $4.40, or 1.1%, at $383.40 a tonne.

COCOA

September London cocoa settled up 20 pounds, or 1.2%, to 1,745 pounds per tonne, having hit a nine-month low on Thursday.

Dealers cited escalating fears over demand, and noted the longstanding backwardated or inverted market structure in cocoa is easing, signalling reduced near-term supply tightness.

Ivory Coast cocoa grinders had processed 377,000 tonnes of beans by end May versus 364,000 tonnes in the same period last season.

September New York cocoa settled up $28, or 1.2%, to $2,319 a tonne, partially recovering from a 4.3% drop on Thursday.

COFFEE

September arabica coffee settled down 0.7 cents, or 0.7%, at 97 cents per lb, having hit an eight-month low on Thursday.

September robusta coffee settled down $15, or 1.2%, at $1,212 a tonne.