Raw sugar futures buckled to close down 4.5 percent on Thursday, on long liquidation and pressure from expectations for abundant supplies. Arabica coffee finished at a 6-1/2-week low while US cocoa was down slightly in quiet volume. The key July raw sugar contract sank 1.03 cents, or 4.5 percent, to end at 21.82 cents per lb.
The market handed back its gains of the previous session, pressured by investor liquidation, said brokers. "We got ourselves overbought," said Sterling Smith, an analyst with Country Hedging Inc in Minnesota. Market also weighed down by supplies from top producer Brazil and major exporter Thailand.
July arabica coffee futures tumbled 6.35 cents, or 2.4 percent, to finish at $2.6370 per lb, the lowest settlement since April 4. Market gave back gains from the past two sessions after selling off from its highs Wednesday and failing to reach the May 13 session high at $2.78, basis July, while other commodities were able to hold their gains, said traders.
Key July cocoa futures closed down $16 at $2,979 per tonne. Market inched lower in thin and sideways dealings. Prices weighed down by the expectation for a good midcrop in top grower Ivory Coast, where exports have resumed, said traders.