London cocoa weakens on demand concerns, sugar also down

LONDON: London cocoa futures on ICE fell on Tuesday, drifting down towards the prior session's more than one-year low, while sugar and coffee prices also weakened.

COCOA

September London cocoa was down 13 pounds, or 0.8%, to 1,687 pounds per tonne at 1356 GMT, after dipping to a low of 1,660 pounds on Monday, its weakest since May 2019.

"Prices are being depressed by fears that the corona restrictions and resulting global economic downturn could dampen demand for cocoa even in the longer term," Commerzbank said in a daily market update.

"What is more, traders expect the premium of $400 per ton that will be payable on the exchange price from the coming season when cocoa is purchased in Ivory Coast and Ghana will additionally put the brakes on demand."

September New York cocoa fell $2, or 0.1%, to $2,268 a tonne.

SUGAR

July raw sugar was down 0.15 cents, or 1.3%, at 11.77 cents per lb as the market continued to lack a clear trend after the rally which took prices to a three-month high of 12.27 cents set earlier this month ran out of steam.

August white sugar fell $3.80, or 1.0%, to $360.70 a tonne.

French sugar maker Cristal Union, Europe's fourth-largest sugar group, reported a net loss of 89 million euros ($100 million) for its 2019/20 financial year, reflecting low sugar prices and exceptional costs.

COFFEE

September arabica coffee fell 0.05 cents, or 0.05%, to 97.95 cents per lb, having hit a nine-month low of 94.55 cents last week.

September robusta coffee fell $3, or 0.25%, to $1,185 a tonne.