Raw sugar hits 1-1/2 month low as real recovers, ample supplies weigh
- A strong real encourages Brazilian exports of dollar-priced sugar by raising returns in local currency terms.
- October white sugar slipped $0.10, or 0.03%, to $354.20 a tonne.
LONDON: Raw sugar futures hit a 1-1/2 month low on Friday as the Brazilian real recovered and the market remained pressured by ample supplies.
A strong real encourages Brazilian exports of dollar-priced sugar by raising returns in local currency terms.
SUGAR
October raw sugar was down 0.13 cent, or 1.1%, at 11.78 cents per lb by 1412 GMT, having hit its lowest since late July at 11.76.
Mills in top producer Brazil's centre-south region churned out 2.93 million tonnes of sugar in the second half of August, 16% more than in the same period a year earlier.
Dealers said Brazilian sugar production for the season looks to be heading to over 37 million tonnes. Production in the season to date is currently 43.8% higher than last season.
"We can still hear foreboding theme music: momentum investors remain long a market that has clearly stopped rallying," said Commonwealth Bank of Australia in a note.
October white sugar slipped $0.10, or 0.03%, to $354.20 a tonne.
COFFEE
December arabica coffee fell 1.4 cents, or 1.1%, to $1.3035 per lb, reversing the prior session's gains, when the market tried to head back towards last week's 8-month high.
Exchange stocks, currently at 20-year lows, continued to dwindle, falling to 1.133 million bags at latest count.
Brazilian farmers exported 2.966 million 60-kg bags of green coffee in August, 2.2% less than in the same month a year earlier, exporters' association Cecafé said..
Coffee farmers and analysts are expecting losses to the country's 2021 crop due to an extended dry spell hitting most of the producing areas in the world's largest producer and exporter.
November robusta coffee rose $5, or 0.4%, to $1,428 a tonne.
COCOA
December London cocoa was up 24 pounds, or 1.4%, at 1,804 pounds per tonne.
December New York cocoa was up $10, or 0.4%, at $2,547 a tonne.
Ivory Coast plans to increase the fixed farm gate price paid to cocoa farmers by over 21% to 1,000 CFA Francs ($1.84) per kilogram in the 2020/2021 season, sources said.
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