NEW YORK/LONDON: Raw sugar futures on ICE fell on Monday as oil prices sank, after sugar futures had risen on Friday to a 5-1/2 month peak.
Meanwhile, Arabica coffee prices rose.
October raw sugar settled down 1.1% to 18.47 cents per lb??, after setting a 5-1/2 month high of 18.92 cents on Friday.
Dealers said on balance, sugar will likely rebound on bets the crop in top producer Brazil, which was hit this season by drought and frosts, will continue to be marked down.
The gains in sugar, they said, will come even though supply in India, another key producer and exporter, remains ample and global demand remains poor, as indicated by the market structure.
ICE sugar speculators raised their net long position by 7,467 contracts to 177,380 in the week to Aug. 3, data showed.
October white sugar fell 2% to $450.20 a tonne.
September arabica coffee settled up 1.9% to 1.7935 per lb.
Arabica prices will end the year 13% above current levels at nearly $2 per lb - just below a recent near seven-year peak - following freak frosts and a drought in top producer Brazil, a Reuters poll of 11 traders and analysts showed.
ICE coffee speculators raised their net long position by 891 contracts to 33,814 in the week to Aug. 3, data showed.
November robusta coffee rose 2.5% to $1,797 a tonne.
December New York cocoa edged up 0.2% to $2,480 a tonne.
ICE cocoa speculators trimmed their net short position by 684 contracts to 15,484 in the week to Aug. 3, data showed.
Cocoa arrivals at ports in the world’s top grower, Ivory Coast, reached 2.11 million tonnes between Oct. 1 and Aug. 8, exporters estimated, up 4.8% from a year ago.
Ivory Coast cocoa grinders processed 452,000 tonnes of beans by the end of July, down 3.6% from a year ago, data from cocoa exporters’ association GEPEX showed.
December London cocoa rose 0.7% to 1,719 pounds per tonne.