LONDON: Raw sugar futures fell to a two-week low on Friday with forecast weekend rains see aiding cane crops in Centre-South Brazil while arabica coffee clawed back most of this week’s losses.
SUGAR
March raw sugar fell 1.2% to 18.19 cents per lb by 1521 GMT after setting a two-week low of 18.09 cents.
Dealers said forecast rains over the weekend in Center-South Brazil could help improve soil moisture levels and the outlook for this year’s cane crop.
An improving outlook for production in India has also contributed to recent market weakness.
Technical indicators have become more bearish after the market’s recent weak performance, adding to selling pressure.
March white sugar fell 1% to $494.80 a tonne.
COFFEE
March arabica coffee was up 1.8% at $2.3620 per lb although the market was still on track for a small weekly loss of 0.7%.
Dealers said the market’s focus remains on the outlook for this year’s crop in Brazil and the extent to which last year’s frosts and drought could curb production.
March robusta coffee rose 0.3% to $2,198 a tonne.
COCOA
March London cocoa rose 0.1% to 1,681 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 0.1% to $2,453 a tonne.
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