Coffee prices fall on demand concerns; sugar also slips
- May arabica coffee fell 0.2% to $1.2885 per lb.
- May raw sugar fell 0.6% to 16.11 cents per lb after sliding by 1.2% on Monday.
- May London cocoa fell 0.2% to 1,758 pounds a tonne.
LONDON: Coffee prices fell on Tuesday as results from JDE Peets reminded investors that demand remains well short of pre-pandemic levels.
COFFEE
May arabica coffee fell 0.2% to $1.2885 per lb by 1128 GMT, having earlier matched Monday's two-week low of $1.2800.
Coffee company JDE Peet's reported a 4.2% fall in annual sales as pandemic-hit sales in cafes outweighed a boom in home-use products.
CEO Fabien Simon said it will probably take 18-24 months for the out-of-home market to return to pre-pandemic levels. Shares tumbled as investors viewed the outlook as disappointing.
Coffee prices have been recovering this year on worries over the coming crop in top producer Brazil after forecasts of colder weather.
May robusta coffee fell 1% to $1,347 a tonne after touching a one-month low of $1,335.
SUGAR
May raw sugar fell 0.6% to 16.11 cents per lb after sliding by 1.2% on Monday.
Sugar remains under pressure from a weak Brazilian real, which tempts exporters in Brazil to sell by raising returns in local currency terms.
Brazil's currency on Tuesday fell to its weakest against the dollar since May as markets reacted negatively to political news.
Dealers said sugar remains rangebound, unlikely to collapse because of weakness in the real, with concerns over near-term supply tightness persisting.
May white sugar fell 0.4% to $458.30 a tonne.
COCOA
May London cocoa fell 0.2% to 1,758 pounds a tonne, having lost 0.9% on Monday, heading further away from last week's three-month peak.
Dealers said there is plenty of industry buying interest around 1,650 pounds and the 2021/22 crop looks bullish, so price downside should be limited.
May New York cocoa rose 0.5% to $2,545 a tonne, reversing the previous session's losses.
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