SOFTS-Arabica coffee hits two-month low, sugar and cocoa also down
- December arabica coffee fell by 1.35 cents, or 1.3pc, to $1.0570 per lb by 1016 GMT after touching a more than two-month low of $1.0560.
LONDON: Arabica coffee futures on ICE fell to the lowest level in more than two months on Friday while sugar and cocoa prices also weakened, dragged down by a broad-based decline in commodity and other financial markets after US President Donald Trump's positive coronavirus test.
COFFEE
December arabica coffee fell by 1.35 cents, or 1.3pc, to $1.0570 per lb by 1016 GMT after touching a more than two-month low of $1.0560.
Dealers said fundamentals appeared bearish, with strong exports out of Brazil after a huge harvest this year.
"We believe the downside is limited in the short term, but we expect further weakness into 2021," Fitch Solutions said in a note on Friday.
November robusta coffee fell $22, or 1.7pc, to $1,266 a tonne.
SUGAR
March raw sugar? was down 0.22 cents, or 1.6pc, at 13.36 cents per lb.
Dealers said the market was still digesting the huge delivery against the October contract, which expired on Wednesday, with concerns it might have been driven partly by weaker than expected demand from China.
"Hopes that China would increase its (reduced-tariff) import quotas have ... not been fulfilled as yet," Commerzbank said in a note.
December white sugar dipped by $3, or 0.8pc, to $372.00 a tonne.
Pakistan's Trading Corporation of Pakistan (TCP) state agency has issued an international tender to purchase 50,000 tonnes of white sugar, European traders said on Friday.
COCOA
December London cocoa?? fell 48 pounds, or 2.7pc, to 1,724 pounds a tonne.
Dealers noted recent rains in top grower Ivory Coast had helped to improve the main-crop outlook.
December New York cocoa?? was down $54, or 2.15pc, at $2,454 a tonne.
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