Sugar, coffee prices weaken as dollar rebounds

LONDON: Raw sugar futures on ICE were lower on Wednesday, weighed partly by a stronger dollar, while coffee and New York cocoa prices also fell.

Sterling-denominated London cocoa bucked the downward trend and climbed to a three-month high.

SUGAR

October raw sugar slipped 0.12 cent, or 0.95%, to 12.48 cents per lb by 1405 GMT.

Dealers noted the weather remained favourable for crops in India although there were concerns that the spread of COVID-19 could disrupt the harvest.

"The significant production expected could be jeopardised in the event of a rapid spread of the coronavirus," analysts Agritel said in a note.

India is facing potential delays in the harvest of its massive sugarcane crop, threatening supply worldwide, as millions of migrant workers needed for the harvest may be scared to travel as coronavirus infections surge throughout the country.

The International Sugar Organization on Tuesday forecast production in India would climb to 31.5 million tonnes in 2020/21, up from the prior season's 27.2 million.

October white sugar fell $2.40, or 0.7%, to $360.10 a tonne.

Pakistan's state agency the Trading Corporation of Pakistan (TCP) has issued a new international tender to purchase 100,000 tonnes of white sugar, European traders said on Wednesday.

COCOA

December London cocoa was up 14 pounds, or 0.8%, at 1,802 pounds per tonne after climbing to a three-month peak of 1,805 pounds.

Dealers said the weakness of sterling against a rebounding US dollar gave some support to prices in London.

December New York cocoa fell $11, or 0.4%, to $2,655 per tonne, slipping slightly from the prior session's seven-month high of $2,684.

COFFEE

December arabica coffee fell 1.05 cents, or 0.8%, to $1.3035 per lb, retreating from the prior session's eight-month high of $1.3270.

November robusta coffee fell $16, or 1.1%, to $1,447 a tonne.