LONDON: Raw sugar futures fell on Thursday after hitting a seven-month high in the previous session on concerns over Indian supplies, while arabica coffee slid to a 15-month low. The weakness of Brazil’s real currency helped to drive down prices of both sugar and coffee.
A weak real encourages selling of dollar-priced commodities in Brazil by raising returns in local currency terms.
SUGAR: March raw sugar fell 2.2% to 19.83 cents per lb at 1422 GMT after climbing to a seven-month peak of 20.44 cents on Wednesday.
Dealers said the market was technically overbought after its recent strong advance, so the decline was not unexpected, while funds also appeared to be taking a breather after a recent buying spree. March white sugar fell 2.3% to $532 a tonne.
Indian mills have produced 2 million tonnes of sugar so far in the season that began on Oct. 1, the Indian Sugar Mills Association said, almost unchanged from a year earlier.
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