Raw sugar futures fall, arabica coffee also weakens
- Dealers said the weather in the Centre-South region of Brazil remained a focus with some showers forecast this week although overall conditions remain dry.
NEW YORK/LONDON: Raw sugar and arabica coffee futures on ICE closed lower on Monday, with some showers forecast in drought-hit Brazil over the next few days and profit taking by funds.
SUGAR
July raw sugar settled down 0.33 cent, or 1.9pc, at 17.38 cents per lb.
Dealers said the weather in the Centre-South region of Brazil remained a focus with some showers forecast this week although overall conditions remain dry.
They noted some profit taking by speculators, which are carrying a large long position in the sweetener, as oil prices also slid.
Lower energy prices can lead to more use of cane to make sugar rather than biofuel ethanol, particularly in Brazil.
August white sugar? settled down $7.20, or 1.5pc, at $459.30 a tonne.
COFFEE
July arabica coffee settled down 1.5 cent, or 0.9pc, at $1.6015 per lb, retreating further from a 4-1/2 year high of $1.6675 set last week.
Dealers noted dry conditions in top producer Brazil could curb production next year so the market would watch rain levels in growing areas over the next few days.
Refinitiv's Agriculture Weather Dashboard forecast up to 35 millimetres (1.38 inches) of rain in the South Minas Gerais region.
Brokers noted reduced activity in the Brazilian physical market, with the local currency at the strongest against the dollar since December.
July robusta coffee settled up $13, or 0.8pc, at $1,625 a tonne.
COCOA
September New York cocoa ??settled down $48, or 2.0pc, to $2,404 a tonne.
Dealers noted supplies remain ample with top grower Ivory Coast expected to harvest a record crop.
Cocoa arrivals at ports in Ivory Coast reached 1.997 million tonnes between Oct. 1 and June 6, exporters estimated, up 7.5pc from 1.881 million tonnes over the same period last season.
September London cocoa?? settled down 17 pounds, or 1.0pc, to 1,610 pounds per tonne?.
An unusual dry spell persisted across most of Ivory Coast's cocoa-growing regions last week, fuelling farmers' fears that the April-to-September mid-crop could be depleted.
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