Raw sugar futures on ICE fell on Friday, as falling energy prices flagged the risk two-year peaks hit the previous session would be hard to sustain. Coffee and cocoa also fell. March raw sugar slipped 0.23 cents, or 1.6%, to 14.34 cents per lb at 1536 GMT, retreating from Thursday's two-year high of 14.90 cents.
Oil extended losses to trade below $61 a barrel, heading for a weekly decline on concern that the coronavirus in China may spread, curbing travel and oil demand. Lower energy prices can tempt Brazilian cane mills to produce more sugar at the expense of ethanol. Cane is a feedstock for both products.
Dealers said the decline in energy prices had served as a reminder the sugar market has latent production capacity that is easily activated by higher prices. March white sugar fell $4.90, or 1.2% to $399.00 per tonne, after hitting a 2-/12 year peak of $411.50 on Thursday.
March arabica coffee fell 2.30 cents, or 2%, to $1.1030 per lb as an attempted recovery from Tuesday's two-month low faltered. ICE certified arabica stocks have risen 5% this year, pressuring prices, though dealers expect the market to find a floor around current levels having fallen some 20% from December's two-year peak.
March robusta fell $41, or 3%, to $1,326 per tonne. March New York cocoa fell $28, or 1% to $2,743 per tonne. The cocoa market is consolidating, having set a 20-month high of $2,859 set on Wednesday on concerns about dry weather in top grower Ivory Coast. March London cocoa fell 15 pounds, or 0.8%, at 1,954 pounds per tonne.
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