Liffe August white sugar closed $18.20 lower at $594.40 a tonne on Wednesday, tracking a broad-based setback in global commodity markets linked partly to slowing growth in China. Liffe July robusta coffee ended $71 lower at $2,514 a tonne, also dragged lower by overall weakness in commodity markets.
Liffe July cocoa ends 3 pounds higher at 1,912 pounds a tonne as dealers waited for exports from top producer Ivory Coast to gather pace after months of disruptions following a disputed presidential election. "Notice that everything is coming off together. It's the stronger dollar and there's a bit of risk aversion today," VTB Capital analyst Andrey Kryuchenkov said. In sugar, dealers locked in gains after a sharp rally on Tuesday following news of a growing line up of vessels in Brazilian ports.
A line of vessels waiting to load sugar at Brazilian ports has swelled because supplies of the sweetener from the new cane harvest have been slow to hit terminals, trade and shipping sources said on Tuesday. Luis Rangel, vice president, commodity derivatives with ICAP North America, said, "We should not see the same type of backlog that we saw in Brazil last year.
"That was mainly caused by India's need to import sugar which will not happen this year." Dealers said the fundamental outlook for global sugar supplies remained bearish as the harvest in the centre-south of Brazil, the world's top producer and exporter, gathered pace, and due to larger than expected Thai output.
"The London coffee market is still in a range without much momentum," Brenda Sullivan, technical analyst at Sucden said. "It looks like technicals may pull it towards $2,500 a tonne," Sullivan added, referring to second-month continuation charts. Cocoa prices were steady as dealers awaited a pick up in the pace of exports from Ivory Coast, where the cocoa industry has resumed activity, after being at a standstill for months following a disputed presidential election.
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