- The dollar surged versus most currencies, making dollar-priced soft commodities costlier for non US investors early in the day but shifted course, driving the sugar and cocoa markets.
NEW YORK/LONDON: Arabica coffee fell on Monday as investors sought refuge in the perceived safety of the dollar, unnerved by news of a fast-spreading new coronavirus strain that shut down much of the United Kingdom and disrupted international freight.
The dollar surged versus most currencies, making dollar-priced soft commodities costlier for non US investors early in the day but shifted course, driving the sugar and cocoa markets.
Sugar was down earlier on the news but recouped its losses, as did cocoa.
March arabica coffee settled down 0.95 cents, or 0.8%, at $1.243 per lb, having hit a one week low earlier.
Arabica closed last week up 3.6% despite upward revisions during the week to the Brazilian 2020 crop.
Speculators raised their net long position in arabica in the week to Dec. 15 by 4,295 contracts to a total long of 19,469 contracts, data showed.
Dealers said arabica had topped out for now and would struggle to trade higher with Europe heading into another lockdown.
March robusta coffee settled up $3, or 0.2%, at $1,383 a tonne.
March raw sugar ??settled up 0.09 cents, or 0.6%, at 14.53 cents per lb??.
Speculators reduced their bullish bet in raw sugar in the week to Dec. 15 by 15,557 contracts, taking their net long position down to 149,148 contracts, CFTC data showed.
Dealers said sugar looks set to drop, though a fall below 14 cents should trigger end-user buying.
Egypt aims to import 400,000-500,000 tonnes of sugar in 2021, the head of the agriculture ministry's sugar crop council told Reuters.
March white sugar ??settled up $2.00, or 0.5%, at $400.30 a tonne.
March London cocoa ??settled up 33 pounds, or 2.0%, to 1,718 pounds per tonne?.
Sterling fell as much as 2.5% as investors sought refuge in the dollar on news of the fast-spreading new coronavirus strain.
A weaker pound makes sterling priced London cocoa cheaper for non-British investors.
March New York cocoa ??settled up $49, or 2.0%, to $2,555 a tonne.