LONDON: London cocoa futures on ICE fell on Tuesday, erasing most of the prior session’s gains, while raw sugar futures slid to a two-week low.
COCOA: December London cocoa fell 4.3% to 5,255 pounds a metric ton by 1402 GMT, largely erasing Monday’s gain.
Prices remained, however, well above last week’s 6-1/2 month low of 4,975 pounds.
Dealers said the market remained underpinned by tight stocks following a large global deficit in the 2023/24 season (October/September), with the International Cocoa Organization recently raising its forecast to 462,000 metric tons from 439,000 tons seen previously.
“The buffer for another poor harvest has shrunk considerably, which should keep the cocoa price at a high level,” Commerzbank said in a note.
December New York cocoa fell 2.8% to $7,264 a ton.
Ivory Coast’s cocoa grind fell 12.1% year-on-year in July to 57,149 metric tons, data from exporter association GEPEX showed on Tuesday.
SUGAR: October raw sugar fell 1% to 18.64 cents per lb after setting a two-week low of 18.59 cents.
Dealers noted index funds had begun to roll positions out of October, which expires on Sept. 30, into March.
An improving crop outlook in India, following strong monsoon rains, remained a bearish influence.
Data on sugar production in Centre-South Brazil covering the second half of August was expected to be issued during the next few days.
A survey of analysts conducted by S&P Global Commodity Insights had a consensus for sugar production in the period of 3.26 million tons, down 6% year-on-year.
October white sugar was down 0.8% at $522 a ton.
COFFEE: November robusta coffee fell 0.25% to $4,879 a ton.
December arabica coffee rose 0.2% to $2.4595 per lb.
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