Monday, November 28

Arabica coffee hits 13-month low, raw sugar little changed


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(Updates with market activity, adds comments, closing prices)

NEW YORK/LONDON, Oct 25 (Reuters) –

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Arabica coffee futures on ICE fell to a 13-month low on Tuesday, weakened by an improving outlook for next year’s crop in top producer Brazil, while raw sugar was little changed.

COFFEE

* December arabica coffee settled down 4.6 cents, or 2.4%, at $1.858 per lb​​ after slumping to a 13-month low of $1.833.

* Dealers said funds were scaling back long positions with recent rains in Brazil aiding flowering, while there remained concerns a global economic downturn could curb demand.

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* “Trends are down on the daily and weekly charts for both markets (arabica and robusta),” said Jack Scoville with the Price Futures Group.

* January robusta coffee fell $5, or 0.3%, at $1,948 a tonne.

SUGAR

* March raw sugar settled down 0.02 cent, or 0.1%, at 18.11 cents per lb. The contract hit a more than two-week low of 18.06 cents earlier in the session.

* Dealers noted sugar production in Brazil’s Centre-South region in the first half of October totalled 1.83 million tonnes, up 59% from the same period a year earlier.

* The rise was slightly lower than expected with a survey issued by S&P Global Commodity Insights estimating that sugar production had risen to 1.95 million tonnes.

* Analyst Datagro on Tuesday forecast there would be a global sugar surplus of 1.87 million tonnes in the 2022/23 season. It expects a larger crop in Brazil next year.

* December white sugar fell $1.90, or 0.4%, at $524.30 a tonne.

COCOA

* December New York cocoa ​settled down $41, or 1.8%, to $2,296 a tonne.

* Dealers noted favorable weather was boosting the outlook for production in top grower Ivory Coast.

* March London cocoa fell 44 pounds, or 2.3%, to 1,884 pounds per tonne​. (Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan, Susan Fenton and Shinjini Ganguli)



financialpost.com