Raw sugar futures on ICE US hit a fresh seven-week low on Wednesday, while robusta coffee fell to fresh 7-1/2 week low, both pressured by a strong dollar and ample supplies. White sugar hit an all-time low for the October contract. October raw sugar settled down 0.19 cent, or 1.5 percent, at 12.94 cents per lb, falling to the lowest, 12.92 cents for the front month since June 29. A strong dollar weighed on sugar prices, said Peter Mooses, senior market strategist with RJO Futures in Chicago.
"The stronger dollar could possibly lead into strengthening the foreign demand," he said. Supplies remain ample with nearby positions in both raw and white sugar trading at substantial discounts, dealers said. "We're still looking at bigger production in Brazil," said Jack Scoville, president of Price Futures Group in Chicago.
Broad commodity weakness also pressured prices, Scoville said. October white sugar extended losses down $2.10 or 0.6 percent, at $361 per tonne, hitting an all-time low for the October contract. White sugar also fell to the lowest for the front month since late September, 2015.
December arabica coffee settled down 1.05 cent, or 0.8 percent, at $1.345 per lb after dipping to a low of $1.3360, the weakest for the second position since July 26. Weaker coffee demand and a stronger dollar weighed on coffee prices, Mooses said. Rains in top producer Brazil have also contributed to the recent decline in prices, of higher benefit for the 2018/19 crop, Scoville said. November robusta coffee settled up $1, or 0.05 percent, at $2,054 per tonne after slumping to a fresh 7-1/2 week low.
December New York cocoa settled down $26, or 1.4 percent, at $1,839 per tonne after touching $1,830, the weakest for the second position since July 13. A large global surplus in the current 2016/17 kept the market on the defensive. "Growing conditions have been good for the current year and there's no real demand to speak of," Scoville said.
Another large crop in West Africa was possible in the 2017/18 season. Lower demand, a stronger dollar and a weakening euro and pound also pressured prices, Mooses added. December London cocoa settled down 15 pounds, or 1.01 percent, at 1,469 pounds per tonne, also the lowest since July 13.