LONDON: Raw sugar futures on ICE were lower on Thursday, tracking losses in many other commodity markets including grains and metals, while arabica coffee and cocoa prices also fell.
July raw sugar fell by 0.18 cent, or 1.1%, to 16.51 cents per lb by 1411 GMT.
Dealers said weak demand remained a concern although the market looked likely to hold above Monday’s two-month low of 16.19 cents, at least in the short-term.
They noted a small delivery was expected against the July contract, which expires at the end of this month, with the open interest continuing to fall steadily.
Last year around 254,000 tonnes was tendered against the July contract.
The market was awaiting the release, possibly this week, by industry group UNICA of cane and sugar production data for the Centre-South of Brazil covering the first half of June.
The data is expected to show that sugar output in the period was broadly in line with the 2.55 million tonnes produced in the same period last year.
August white sugar fell by $5.40, or 1.3%, to $418.20 a tonne.
September arabica coffee fell by 0.35 cents, or 0.2%, to $1.5355 per lb.
Dealers said recent rains had improved the outlook for next year’s arabica crop in Brazil although dry weather remains a concern.
“Brazil’s weather will continue to be the focus of the market. Some isolated showers are helping avoid a complete depletion of soil moisture during the current dry season,” Rabobank said in a report, adding the volume of rain was very small and was not impeding this year’s harvest.
September robusta coffee rose by $16, or 1%, to $1,639 a tonne.
September New York cocoa fell by $22, or 0.9%, to $2,347 a tonne. September London cocoa fell by 7 pounds, or 0.4%, to 1,608 pounds a tonne.
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