Raw sugar, coffee edge off peaks as markets consolidate

LONDON: Raw sugar futures on ICE edged off the prior session's two-month peak on Wednesday while arabica coffee fell from Tuesday's 3-1/2 year high as the two markets consolidated, taking a lead from copper, grains and oil.

SUGAR

May raw sugar fell 3.5% to 17.32 cents per lb at 1345 GMT, having settled up 4.5% on Tuesday after hitting a peak of 17.98. The contract expires on Friday.

Commerzbank said improved supplies this season from key producers the European Union, India and Thailand should leave the market in a balanced position, though persistent dry conditions in Brazil are an increasing worry.

Brazil sugar output so far in April is 35% below the same period a year earlier as fewer mills have started the crushing season and sugar content lags the previous crop, industry data showed.

Dealers said sugar could edge lower in the coming days against a backdrop of strong exports from India, though losses should be limited given Brazil supply worries and as funds still have the ability and inclination to buy more.

August white sugar fell 3% to $466 a tonne.

COFFEE

July arabica coffee fell 0.1% to $1.4580 per lb, having settled up 1.8% on Tuesday after hitting a high of $1.4630.

Starbucks missed quarterly sales estimates on Tuesday, sending shares down 2%, though the coffee chain raised its annual revenue and profit forecast on the expectation more customers will return as they get vaccinated.

The company's revenue rose 11% to $6.67 billion for the second quarter ended March 28, indicating improved coffee demand in the out-of-home sector as coffee shops reopen.

July robusta coffee slipped 0.1% to $1,460 a tonne.

COCOA

July New York cocoa fell 0.5% to $2,466 a tonne, weighed by excess supplies.

Mondelez on Tuesday posted strong quarterly results as customers munched more of their favourite biscuits and chocolates during coronavirus lockdowns.

July London cocoa edged up 0.1% to 1,650 pounds per tonne.