NEW YORK/LONDON: Arabica coffee futures on ICE closed down on Tuesday, with much-needed rains forecast for top producer Brazil, and raw sugar prices also fell.
September arabica coffee settled down 2.95 cents, or 1.9%, at $1.5325 per lb.
Dealers said the market was weighed down partly by an improving outlook for next year’s harvest in Brazil, with rain falling during the past few days and more forecast, bringing some relief after a period of extreme dry weather.
They said that coffee was now moving to ports in Colombia after recent anti-government protests led to a sharp decline in exports during May, though there are expected to be continuing delays to shipments for at least the next two or three months.
Trader Comexim said in a note that coffee from Brazil’s new crop is becoming available in the market as the harvest progresses. It said the lots show good quality, in general.
September robusta coffee settled up $4, or 0.3%, at $1,600 a tonne.
July raw sugar settled down 0.24 cent, or 1.4%, at 17.05 cents per lb.
Dealers said that favourable crop prospects in India and Thailand, along with the strong pace of production in Brazil, had helped to put the market on the defensive while consumption also appears weak.
However, dealers also said that some support had been provided by stronger energy markets, raising the possibility of a shift to using more cane to make biofuel ethanol rather than sugar.
“Fundamentals-driven players are likely to be happy to accumulate on price dips while the perceived need to keep sugar prices around about ethanol parity continues,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
August white sugar settled down $7.70, or 1.7%, at $440.80 a tonne.
September London cocoa settled down 4 pounds, or 0.2%, to 1,632 pounds per tonne.
September New York cocoa closed down $19, or 0.8%, to $2,428 a tonne.
Comments
Comments are closed for this article.