Raw sugar prices ease, NY cocoa hits near 3-week low

LONDON: Raw sugar futures on ICE weakened on Tuesday, weighed partly by a firmer dollar, while New York cocoa prices dipped to the lowest level in nearly three weeks.

SUGAR

March raw sugar fell 0.09 cents, or 0.6pc, to 14.36 cents per lb by 1302 GMT.

Dealers said funds have been scaling back long positions with their appetite for agricultural commodities appearing to be reducing at the moment.

The market remained underpinned by diminishing crop prospects in several regions including western Europe.

France's farm ministry on Tuesday again cut its forecast for the country's 2020 sugar beet harvest, which has been hit by crop disease and drought.

British Sugar's parent Associated British Foods also said in a trading update last week that UK production would only be 900,000 tonnes, well down on last year's 1.19 million, due to the severe impact of virus yellows on sugar beet.

March white sugar fell $1.90, or 0.5pc, to $395.80 a tonne.

COCOA

March New York cocoa was down $61, or 2.3pc, at $2,575 a tonne after dipping to a low of $2,570, the weakest since Nov. 18.

Dealers said a recent deal between top grower Ivory Coast and chocolate maker Hershey may lead to a pick-up in producer selling and exert downward pressure on prices.

The prospect of a global surplus in the current 2020/21 season also remained a bearish influence although there remained some concerns about dry conditions in parts of Ivory Coast with the country currently in its dry season.

March London cocoa fell 23 pounds, or 1.3pc, to 1,756 pounds a tonne.

Dealers said the London market was underpinned by the weakness of sterling.

COFFEE

March arabica coffee rose 0.05 cents, or 0.04pc, to $1.1915 per lb.

March robusta coffee was unchanged at $1,350 a tonne.