Raw sugar futures dropped to finish at a one-month low on Wednesday, as the commodity complex saw its biggest loss in three weeks on US economic worries. US cocoa closed at a seven-week low and arabica coffee changed direction to end negative as well.
Key October raw sugar futures eased 0.47 cent, or 1.7 percent, to settle at 27.69 cents a lb, its lowest settlement since July 6 for the second consecutive day. Market closed lower for the fifth straight day, closing well below the spot contract's 200-day moving average at 28.25 cents for the second straight day.
Concerns about economic growth weighed on the commodity complex, helping to push sugar futures lower, said traders. Raw sugar from the Philippines struggled to find buyers because main market Japan is well stocked for now, while a drop in London whites futures from record highs spurred buying of Thai sweetener.
September arabica coffee futures dropped 1.30 cents to close at $2.4190 per lb. Market continued to respect support at $2.40, basis September, with firm resistance at the 200-day moving average around $2.4960, said traders. Main pressure came from the global economic worries that pressured both the commodity and stock markets, said traders.
ICE certified arabica stocks inched down 25 bags to 1,531,183 bags on August 2, with 5,155 bags pending grading, according to ICE data. Small coffee state Parana, which produces roughly 5 percent of Brazil's coffee, could face frost in the early hours of Thursday, forecaster Somar predicted, but the likelihood of significant crop damage is minimal.
Key September cocoa futures fell $17 to close at $2,916 a tonne, the lowest settlement since June 16. Total open interest reached 178,418 lots by August 2, the highest in 3-1/2 years, according to ICE data. September/December position rolling continued ahead of the September contract's first notice day August 18. The index fund roll is expected to begin Friday, said traders.
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