Raw sugar prices weaken, arabica coffee also slides
- March London cocoa fell 7 pounds, or 0.4%, to 1,679 pounds a tonne.
- March robusta coffee was unchanged at $1,318 a tonne.
- March raw sugar was down 0.16 cents, or 1%, at 15.44 cents per lb.
LONDON: Raw sugar futures on ICE fell on Monday, weighed down by broad-based weakness in commodity and equity markets as lockdowns to slow the spread of COVID-19 raised concerns about the outlook for demand and diminished risk appetite among investors.
Dealers said the strength of the dollar against Brazil's real currency was also a bearish influence on both sugar and arabica coffee prices.
A weak real boosts dollar-denominated prices in local currency terms in Brazil and can spark producer selling in the world's top exporter of both sugar and coffee.
SUGAR
March raw sugar was down 0.16 cents, or 1%, at 15.44 cents per lb by 1329 GMT. The front month had climbed to a peak of 16.33 cents last week, its highest since May 2017.
Fund buying helped to fuel the recent run-up and the latest CFTC data, for the week to Jan. 5, showed a significant expansion in the net long position held by speculators.
Short-term supply tightness, driven partly by a poor crop in Thailand, continued to underpin prices particularly in the whites market.
March white sugar was up $3.60, or 0.8%, at $438.30 a tonne.
COFFEE
March arabica coffee fell 2.85 cents, or 2.3%, to $1.2085 per lb with the weak Brazil real adding to the downward pressure on prices.
March robusta coffee was unchanged at $1,318 a tonne.
COCOA
March New York cocoa was down $17, or 0.7%, at $2,499 a tonne amid concerns that lockdowns across Europe could further curb demand while upcoming fourth quarter grind data would be closely monitored.
North American grind data is due to be released on Jan. 14 and European data provisionally on Jan. 20.
March London cocoa fell 7 pounds, or 0.4%, to 1,679 pounds a tonne.
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