LONDON: Raw sugar futures on ICE fell on Wednesday, weighed down partly by weaker energy markets and rains in top producer Brazil which aided the outlook for next year’s cane crop.
SUGAR
March raw sugar was down 1.3% at 19.40 cents per lb by 1514 GMT after dipping to a one-week low of 19.34 cents.
Dealers said rains in Centre-South Brazil should boost prospects for next year’s cane crop while the outlook in several other countries including India and Thailand was also improving.
The new COVID-19 variant, Omicron, could also curb demand growth in coming months.
March white sugar fell 1.1% to $505.30 a tonne.
A World Trade Organization panel ruled in favour of Brazil, Australia and Guatemala on Tuesday in their trade disputes with India over sugar subsidies and asked New Delhi to conform with global rules.
India could sell more than 6 million tonnes of sugar on the world market this year with the World Trade Organization ruling that it flouted the rules by offering export subsidies unlikely to have an impact on overseas sales, trade officials said.
COFFEE
March arabica coffee was up 0.7% to $2.3890 per lb but remained well below last week’s 10-year high of $2.5235.
Commerzbank said in a note that adverse weather in Brazil and Colombia had dented prospects for next year’s crops, while in Vietnam ageing trees were likely to show lower yields.
“It would not surprise us therefore if coffee prices were not to have peaked just yet,” the bank said.
March robusta coffee rose 0.4% to $2,306 a tonne.
COCOA
March London cocoa rose 0.5% to 1,715 pounds a tonne.
A total of 29,900 tonnes of cocoa was tendered against the ICE December London cocoa contract, exchange data showed on Wednesday.
March New York cocoa rose 1% to $2,529 a tonne.
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