SOFTS-Raw sugar nears 1-month low; cocoa and coffee also fall
- Speculators cut their net long position in ICE raw sugar in the week to Dec. 1 by 16,551 contracts to 176,330 contracts, data showed.
NEW YORK/LONDON: Raw sugar futures on ICE fell on Friday, heading back to near one-month lows touched last week, as funds scaled back long positions on easing supply concerns. Cocoa and coffee also fell.
SUGAR
March raw sugar fell 0.3pc to 14.39 cents per lb at 1237 GMT.
Speculators cut their net long position in ICE raw sugar in the week to Dec. 1 by 16,551 contracts to 176,330 contracts, data showed.
One dealer noted improved weather in Brazil, a better harvest in Thailand and the increased likelihood of Indian exports, either with the help of a government subsidy early next year or driven by a local price collapse that would spur exports.
Although sugar is also being underpinned by a slowdown in imports from top consumers China and Indonesia, he said on balance, he expects a near term correction to a range of between 13.50-15.50 cents from 14-16 cents previously.
March white sugar fell 0.3pc to $396.10 a tonne.
COCOA
March New York cocoa fell 1.5pc to $2,615 a tonne, having hit a two week low earlier.
March London cocoa fell 0.3pc to 1,769 pounds per tonne?, having also hit a two week low.
Fundamentals remain bearish with the prospect of a substantial surplus in the current 2020/2021 season, with the pick-up in producer selling during the last few days also weighing.
Ivory Coast will lift a suspension imposed this week on cocoa sustainability schemes run by Hershey after the chocolate maker committed to paying a premium aimed at combating poverty among farmers.
COFFEE
March arabica coffee fell 0.6pc to $1.1695 per lb??.
Rains in the coffee growing regions of top producer Brazil have improved the outlook for next year's crop. Weather forecaster Maxar said conditions look set to remain wet for the next six to ten days.
March robusta coffee fell 1.2pc to $1,339 a tonne, after hitting a one month low earlier.