LONDON: Arabica coffee futures on ICE fell on Wednesday, pressured by fresh selling by producers and speculators, while sugar prices also slipped as chart signals turned more bearish.
COFFEE
* September arabica coffee was down 0.75 cent, or 0.7 percent, to $1.0830 per lb at 1150 GMT, after dipping to a session low of $1.0750.
* Dealers noted chart signals had weakened, after prices attempted to rally in recent sessions but found little buying support.
* "Technically, the market seems to be turning," one European dealer said.
* Traders also pointed to selling pressure by Colombian and Brazilian producers, with the latter being encouraged in recent days to hedge supplies by the weaker real currency.
* Arabica prices were also under increased pressure from funds rolling their short positions forward out of the September contract, dealers said.
* "This is day two of the index (fund) rolling in New York," the dealer said. "So the volumes are going to be significant."
* September robusta coffee fell $1, or 0.06 percent, to $1,667 a tonne.
* Indonesia's 2018/19 coffee bean output is seen rising to 660,000 tonnes, the country's Association of Coffee Exporters and Industries (AEKI) said on Wednesday.
SUGAR
* October raw sugar slipped 0.08 cent, or 0.7 percent, to 10.80 cents per lb.
* Dealers said the prior session's decline, partly due to the weaker Brazilian real, weakened the technical structure and spurred more light selling on Wednesday.
* "The rally seems to have faltered for now," Tobin Gorey of the Commonwealth Bank of Australia said in a market note. "Nonetheless, weather worries are accumulating in the background."
* Participants were monitoring dry weather conditions across Europe for signs of the impact on the development of beet crops.
* Focus also remained on top grower Brazil, although recent rains have helped relieve a long dry spell in the key cane region, dealers said.
* Egypt has cancelled a tariff imposed last year on sugar exports, the ministry of trade and industry said, in a move that opens the door for exports to resume.
* October white sugar was down $2.60, or 0.8 percent, at $320.40 a tonne.
Comments
Comments are closed for this article.