Raw sugar hits two-week low on strong dollar and weak equities
- March arabica coffee was up 0.1% at $2.3220 per lb
- March London cocoa rose 0.4% to 1,686 pounds a tonne
- March raw sugar fell 0.7% to 18.28 cents per lb
LONDON: Raw sugar futures on ICE fell to a two-week low on Friday, pressured by a strong dollar and weakness in equity markets, while London cocoa hit a three-week low before finding some support.
Sugar
March raw sugar fell 0.7% to 18.28 cents per lb by 1253 GMT after setting a two-week low of 18.27 cents.
Dealers said rising tensions between Western powers and Russia continued to keep the market on the defensive as investors reduce exposure to riskier assets such as commodities.
An improving outlook for production in India has also contributed to recent market weakness.
March white sugar fell 0.9% to $495 a tonne.
Raw sugar slips as geopolitical tensions deter investors
Cocoa
March London cocoa rose 0.4% to 1,686 pounds a tonne after dipping to a low of 1,677 pounds, the weakest level since Jan. 7.
Dealers said the outlook for demand has become more bearish recently owing to a gloomier global economic outlook.
Supplies also remain plentiful.
Total reported cocoa stocks rose sharply during the 2020/21 season (October/September), partly driven by the availability of data from South-East Asia, the International Cocoa Organization (ICCO) Expert Working Group on Stocks (EWGS) estimated after a meeting on Thursday.
March New York cocoa rose 0.4% to $2,461 a tonne.
Coffee
March arabica coffee was up 0.1% at $2.3220 per lb but on track for a weekly loss of 2.4%.
Dealers said the market's focus remains on the outlook for this year's crop in Brazil and the exent to which last year's frosts and drought could curb production.
March robusta coffee fell 0.8% to $2,174 a tonne.
Comments
Comments are closed.