Markets

Raw sugar, arabica coffee retreat from multi-month peaks

Published June 1, 2018 Updated June 1, 2018 03:28pm

SUGAR

* July raw sugar was down 0.07 cent, or 0.6 percent, at 12.72 cents per lb at 1423 GMT after rising to 12.97 cents, the highest for the front month since March 9.

* Dealers said the market had also become technically overbought after a strong rise in prices during the last few days linked to the protests.

* They said the harvest in Centre-South Brazil now appeared to be back in full flow while mills were also beginning to resume operations.

* The weakness of Brazil's real currency on Friday also threatened to trigger a pick-up in producer selling, improving dollar-denominated prices in local currency terms.

* August white sugar rose $1.30, or 0.4 percent, to $355.90 a tonne after setting a two-month peak of $360.

COFFEE

* July arabica coffee fell 1.20 cents, or 1 percent, to $1.2250 per lb after hitting $1.2495, the highest for the front month since Jan. 30.

* The weak Brazilian real and improved flow of supplies in the world's top producer also weighed on prices.

* The market's rise has been driven partly the truck drivers' protests in Brazil this week, which is expected to reduce the country's May coffee exports by 900,000 60-kg bags.

* Dealers said the crop outlook in Brazil remained generally favourable with a record harvest anticipated.

* July robusta coffee fell $4, or 0.2 percent, to $1,748 a tonne.

COCOA

* July New York cocoa fell $27, or 1.1 percent, to$2,427 a tonne after dipping to a three-month low for the front month of $2,413.

* The International Cocoa Organization (ICCO) on Thursday cut sharply its forecast for a global cocoa surplus in 2017/18, partly reflecting stronger-than-expected grindings.

* The inter-governmental body saw a marginal surplus of just 10,000 tonnes in the 2017/18 season (October/September), compared with a previous projection of 105,000 tonnes issued on Feb. 28.

* July London cocoa was down 26 pounds, or 1.5 percent, at 1,747 pounds a tonne.

Copyright Reuters, 2018