LONDON: Raw sugar futures on ICE turned lower on Wednesday after scaling a 19-month peak, as the recent spate of fund-buying abated, while coffee and cocoa prices also fell.
SUGAR Raw sugar fell 1.3 percent to 20.54 cents per lb by 1400 GMT, after earlier setting a 19-month high of 21.24 cents. Dealers said the run-up in prices had contributed to the weakness of demand in the physical market.
They noted the run-up had been driven partly by rains in Brazil, which should lower sugar production this season. “Rain in Centre/South Brazil has slowed the harvest, meaning that sugar production now looks likely to fall short of the 39 million tonnes that the ISO expected six weeks ago,” the International Sugar Organization said in a report on Wednesday.
The El Nino weather event was also seen to curb production of the sweetener, particularly in Asia. White sugar lost 1.55 percent to USD547.90 a metric ton.
COFFEE
Arabica coffee fell 3.7 percent to USD2.9305 per lb, largely erasing the prior session’s steep gains; the market rose 4.1 percent on Tuesday.
Dealers said the strong pace of exports from top producer Brazil had ensured there are currently ample supplies. Brazil’s green coffee exports in September totalled 235,800 metric tons, or 3.93 million 60-kg bags, the highest volume in 20 months, according to government data published on Tuesday.
Concerns that the El Nino event will curb global output in the 2027/28 season, however, continued to underpin prices while certified exchange stocks also remain low.
Robusta coffee lost 2.7 percent to USD3,492 a ton.
COCOA
London cocoa fell 0.7 percent to £4,201 per ton, Dealers noted forecast rains should improve the outlook for crops in top grower Ivory Coast. “Upcoming rains will significantly ease drought concerns in Ivory Coast’s main cocoa crop but may not fully support young pod recovery,” LSEG Research and Insights said in a note. New York cocoa lost 1.6 percent to USD5,611 a ton.
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