LONDON: Raw sugar futures on ICE hit their lowest price in a month on Thursday on signs of weakening demand as global freight rates soar. Arabica coffee, meanwhile, dropped to its lowest price in 2-1/2 weeks.
SUGAR
October raw sugar was down 0.9% to 19.30 cents per lb by 1347 GMT (9:47 a.m. EDT), having hit its lowest price since early August at 19.10 cents.
Dealers said despite concerns that output in top producer Brazil might plummet by over 6 million tonnes versus last season, demand is falling sharply as soaring freight rates prompt buyers to eat into stocks.
Weak Brazilian output is now priced in, they added.
India is likely to export 6 million tonnes of sugar in the new marketing year starting Oct. 1 as a rally in global prices has made exports feasible for Indian mills, a leading trade body said.
Brazilian truckers staged demonstrations throughout the South American country on Wednesday, partially blocking key routes in several states and prompting President Jair Bolsonaro to ask the protesters to stand down.
October white sugar fell 1.3% to $475.40 a tonne.
COFFEE
December arabica coffee fell 1.5% to $1.8735 per lb, having hit its lowest price since late August at $1.8375.
“Major coffee growing regions in Brazil have been greeted with much-anticipated rainfall during the first week of September, providing some relief to the tight balance in coffee after several months of severe drought and frost,” Citi said.
November robusta coffee fell 1.4% to $2,048 a tonne, after setting a four-year high on Wednesday.
Coffee prices in top robusta producer Vietnam hovered near a four-year high this week following cues from international markets. Parts of the coffee belt are under coronavirus movement curbs, though farmers said they are allowed to go to their coffee farms and tend to the trees.
COCOA
December New York cocoa fell 1.1% to $1,801 a tonne, after hitting a nine-month high on Thursday.
December London cocoa lost 0.7% to 2,669 pounds per tonne?, after also hitting a nine-month peak on Thursday.
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