Raw sugar futures extended losses to the lowest level in more than six years on Wednesday, pressured by the weak currency in top grower Brazil that added to the bearish mood of a market already struggling to cope with huge and still-rising stocks. Arabica coffee nudged down to the lowest since January 2014 while New York cocoa fell for the third straight session as the British pound continued to slide against the US dollar.
Volume was heavy in the US soft commodity markets. Brazil's real currency fell against a strengthening dollar for the fifth straight session, making commodities such as sugar attractive for the country's producers to sell. July raw sugar futures on ICE closed down 0.21 cent, or 1.7 percent, at 11.87 cents a lb, after dipping to the lowest since January 2009 at 11.83 cents. Total open interest rose for the seventh straight day on Tuesday to 891,727 lots, the highest since April 13, exchange data showed.
"Near term, there is some bearishness creeping in with regards to the amount of raws to be moved following the very large May delivery," said Tom McNeill, director of Green Pool Commodities, referring to a record delivery against expiry of the ICE May raw sugar contract. The stocks overhang is large, McNeill said. August white sugar on ICE closed down $2.10, or 0.6 percent, at $345.70 per tonne.
Arabica coffee futures were choppy, pressured by the strong dollar but supported by an unchanged crop forecast in top grower Brazil. This was viewed as supportive after recent estimates had called for an increasingly larger crop, traders said. July arabica coffee finished up 0.45 cent, or 0.4 percent, at $1.245 per lb after falling to $1.2355, the lowest since January 31, 2014. Robusta coffee futures bounced up from Tuesday's 1-1/2-year low as speculators holding short positions took profits and trade buying lifted prices, traders said.
July robusta ended up $43, or 2.7 percent, at $1,618 a tonne, up from Tuesday's low at $1,566. New York July cocoa fell $16, or 0.5 percent, to end at $3,134 per tonne. Total open interest rose for the tenth straight session on Tuesday to 221,934 lots, the highest since June 5, 2014. July London cocoa finished up 7 pounds, or 0.3 percent, at 2,126 pounds a tonne.
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