Raw sugar slips further from recent peak, coffee also down
- March raw sugar fell 0.14 cents, or 0.85%, to 16.41 cents per lb .
- May arabica coffee fell 0.5 cents, or 0.4%, to $1.2250 per lb.
- May New York cocoa was up $32, or 1.3%, at $2,469 a tonne.
LONDON: Raw sugar futures on ICE were lower on Friday, extending a retreat from a near four-year peak set earlier in the week, while arabica coffee prices also weakened.
SUGAR
March raw sugar fell 0.14 cents, or 0.85%, to 16.41 cents per lb by 1332 GMT. The front month had peaked at 17.05 cents on Wednesday, its highest since April 2017.
Dealers said the market was underpinned by India's struggle to export excess stocks, which had contributed to short-term tightness in the physical market.
India's sugar exports are likely to drop more than 24% in the year to September because of logistical constraints such as a shortage of containers and congestion at the country's ports, a leading trade body said on Thursday.
March white sugar, which expires later on Friday, rose $1, or 0.2%, to $471 a tonne.
Dealers said a delivery of about 400,000 to 450,000 tonnes of white sugar was expected against the March contract.
COFFEE
May arabica coffee fell 0.5 cents, or 0.4%, to $1.2250 per lb.
Dealers said renewed weakness in Brazil's real currency weighed on prices.
A weaker real boosts dollar-denominated prices in local currency terms in Brazil and can spark producer selling.
May robusta coffee was down $11, or 0.87%, at $1,351 a tonne.
COCOA
May New York cocoa was up $32, or 1.3%, at $2,469 a tonne.
Dealers said they were keeping a close watch on the March contract, which expires next week, with its premium to May falling sharply on Thursday as some longs opted to liquidate positions rather than seek delivery.
The front month's premium regained some ground on Friday but remained well below peaks set earlier in the week.
May London cocoa rose by 1 pound, or 0.1%, to 1,657 pounds a tonne.
Comments
Comments are closed for this article.