LONDON: Raw sugar futures on ICE were lower on Monday as Indian selling and weak demand helped to trigger a pullback from a recent 4-1/2-year high.
SUGAR
October raw sugar fell by 0.08 cents, or 0.4%, to 19.50 cents per lb by 1300 GMT.
The front month climbed to a peak of 20.37 cents last week for its highest since February 2017.
Dealers said that Indian mills have taken advantage of the recent run-up in prices to make export sales, particularly given indications from India’s government that export subsidies are likely to be withdrawn from October.
“The market has run into a wall of Indian selling,” broker Marex said in market update, adding that further sales could dry up because of a lack of buyers.
October white sugar fell by $6.90, or 1.4%, to $476.60 a tonne.
COFFEE
November robusta coffee rose by $6, or 0.3%, to $1,888 a tonne.
Dealers said the market could continue to consolidate in the short term before potentially resuming its upward trend. Prices have risen by 36% this year.
“The long-term trend favours the upside and we expect prices to remain on-trend,” broker Sucden Financial said in a technical note.
December arabica coffee was down 1.15 cents, or 0.6%, at $1.8035 per lb.
COCOA
December New York cocoa fell by $2, or 0.1%, to $2,565 a tonne.
Dealers said supplies remained ample after a rise in production in Ivory Coast this season.
The market was also keeping a close watch on prospects for the next season, which begins in October, with some expecting there could be a drop in production.
Another week of heavy rains in Ivory Coast’s cocoa growing regions, however, has raised farmers’ expectations for a strong October-to-March main crop, with some already anticipating a harvest as abundant as the previous season.
December London cocoa was down 4 pounds, or 0.2%, at 1,786 pounds a tonne.
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