LONDON: London cocoa futures on ICE hit a three-week low on Wednesday on ongoing worries over surplus supplies, while sugar recovered amid improved sentiment in the wider financial markets.

COCOA

March London cocoa was down 1.1% at 1,772 pounds per tonne at 1417 GMT, a three-week low.

Dealers said the British pound continues to be relatively firm, weighing on the market, while in terms of the weather, the outlook for the current crop remains good.

But a rebound in demand in the current 2021/22 season may not be enough to prevent another global surplus, with only a small fall in production expected from 2020/21’s record level.

December New York cocoa fell 1% to $2,532 a tonne, having touched a two-month low of $2,526 on Tuesday.

SUGAR

March raw sugar edged up 0.2% to 18.90 cents per lb, having hit its weakest since late September on Tuesday at 18.82 cents.

Dealers said sugar maintains a bearish bias short term.

They cited late rains in key producers India and Thailand, much-needed showers in top producer Brazil and a weak Brazilian real that encourages the selling of dollar-priced sugar by raising returns in local currency terms.

December white sugar fell 0.4% to $498.50 a tonne.

COFFEE

December arabica coffee slipped 0.1% to $2.0415 per lb. Nestle posted a forecast-beating third quarter on Wednesday, saying strong coffee sales helped boost overall revenue. The world’s largest food group said its Starbucks-branded products posted 15.5% growth in the first nine months.

January robusta coffee fell 0.3% to $2,114 a tonne.