LONDON: Raw sugar futures on the ICE fell on Friday, depressed by weakness in crude oil and many other commodity markets driven partly by the prospect of further interest rate hikes in the U.S.
May raw sugar fell 1.4% to 20.86 cents per lb by 1126 GMT, slipping back from the prior session’s contract high of 21.33 cents. The recent run-up has been driven partly by diminishing prospects for production in India, Thailand and China which have helped to tighten global supplies.
An improving outlook for sugar production in Centre-South Brazil during the upcoming 2023/24 has, however, helped to stall the advance.
“Expectations of a 13.0% increase, reported by DATAGRO, in Brazil’s centre/south region have catalysed the recent cooling of prices,” Fitch Solutions said in a note.
Brazil’s sugar and ethanol industry group Unica was due to release a production report on the key Centre-South region of Brazil covering the second half of February around 1400 GMT.
May white sugar fell 1.45% to $583.70 a tonne.
COFFEE
May arabica coffee rose 0.1% to $1.7530 per lb, hovering just above the prior sessions’ four-week low of $1.7390. Dealers noted ICE certified stocks were beginning to edge back up again after dipping to the lowest level this calendar year earlier this week.
Green coffee exports in Brazil fell 35.8% in February, exporters group Cecafe said on Thursday, as stocks in the country run low after two poor crops while farmers are reluctant to sell what is left at current low prices. May robusta coffee fell 0.55% at $2,156 a tonne.
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