LONDON: Raw sugar futures on ICE fell for a second consecutive day on Tuesday as dealers were upbeat about looming supply news from India and concerned about the strong US dollar, while arabica coffee hit a new one-year low.
SUGAR
March raw sugar? fell 0.6% to 18.66 cents per lb as of 1438 GMT, having settled down 0.4% on Monday.
Dealers said supply news from India, the world’s second largest sugar exporter, was weighing on prices, though fresh spot demand from major buyers China and Indonesia and reduced cane crushing in top producer Brazil were limiting losses.
Indian sugar output is expected to rise 2% to 36.5 million tonnes in the new season that began on Oct. 1, a leading industry body said on Monday, adding the country will have enough excess supply to export 9 million tonnes.
An Indian government official meanwhile said the country will announce this year’s sugar export quota within a week.
December white sugar fell 2% to $546 a tonne.
COFFEE
December arabica coffee rose 0.5% to $1.9650 cents per lb?, after touching a one-year low of $1.9320. The contract lost 9.8% last week.
Shipments of green coffee out of top producer Brazil averaged 10,570 tonnes per day in October versus 9,440 tonnes per day in the same month last year, according to government data.
Underpinning prices however, green coffee stocks stored at ports in the United States, the world’s largest consumer of the beverage, fell by 71,608 60-kg bags at the end of September to 6.37 million bags.
Comments
Comments are closed.