Raw sugar prices weaken as July discount widens

LONDON: Raw sugar futures on ICE were lower on Tuesday as a further weakening in the front month's discount in the run-up to its expiry next week highlighted concerns about weak demand.

SUGAR

July raw sugar fell by 0.14 cent, or 0.8%, to 16.64 cents per lb by 1138 GMT.

Dealers said the market was showing signs of resuming its recent downtrend after a sharp upward correction on Monday when the front month hit a two-month low of 16.19 cents.

They noted July's discount to October was widening in the run-up to its expiry next week, a sign there is little appetite to receive sugar given demand remains weak.

August white sugar fell by $3.40, or 0.8%, to $422.30 a tonne.

Sao Martinho SA, a large Brazilian maker of sugar and ethanol, said on Monday it plans to produce more of the cane-based biofuel and less sugar from its 2021/22 crop.

COFFEE

September arabica coffee rose by 0.45 cent, or 0.3%, to $1.5450 per lb, edging further from a one-month low of $1.4905 set on Monday.

Dealers said the market was underpinned by some tightness in supplies with Brazil harvesting a smaller crop this year, an off-year in its biennial cycle.

Speculators cut their net long position in arabica coffee on ICE in the week to June 15, data from the US Commodity Futures Trading Commission showed on Monday.

September robusta coffee rose by $1, or 0.1%, to $1,618 a tonne.

COCOA

September New York cocoa rose by $18, or 0.8%, to $2,396 a tonne.

September London cocoa rose by 14 pounds, or 0.9%, to 1,634 pounds a tonne.

The world's top two cocoa producers Ivory Coast and Ghana on Monday threatened to name and shame top chocolate brands they say are undermining a scheme aimed at paying cocoa farmers a living income.