SOFTS-Raw sugar drops 2.2% to its lowest level in 5 months; flat arabica coffee
Recasts, includes closing prices and comments
NEW YORK / LONDON, January 5 (Reuters) – Raw sugar futures on ICE closed 2% lower on Wednesday and hit a 5-month low during the session as rains continue to improve prospects for the new Brazilian crop as the request is dull.
Arabica coffee futures closed flat after a strong performance in the previous session.
* Mars raw sugar SBc1 stabilized at 0.41 cent, or 2.2%, at 18.34 cents per pound. It hit a five-month low during the session at 18.32 cents / pound.
* Dealers said the next index fund rebalance was bearish for sugar, which rose by around 20% in 2021. Commodities that performed well in 2021 have effectively increased their weight and are therefore sold during the period. rebalancing while underperforming commodities are bought.
* They also noted that rains in the key south-central region of Brazil had improved prospects for this year’s harvest.
* “Harvest conditions will improve and we should see cane (central-south) estimates move from the 530-570 range which was the consensus,” said a broker.
* March white sugar LSUc1 fell $ 7.10, or 1.4%, to $ 488.20 a tonne.
* Arabica coffee in March KCc1 stable closed at $ 2.3175 per pound.
* Dealers said the market has seen bullish momentum after rising nearly 4% on Tuesday and has the potential to climb back to last month’s 10-year highs in the coming weeks.
* Costa Rican growers exported 12.5 percent more coffee in December than in the same month of 2020, the Central American country’s Coffee Institute said on Tuesday.
* Robusta coffee from March LRCc2 stood at $ 28, or 1.2%, at $ 2,321 a tonne, extending its decline from a 10-year high of $ 2,384 set in late December.
* Dealers said the market, however, remained supported by supply chain issues that disrupted shipments from major robusta producer Vietnam.
* March New York cocoa CCc1 Was $ 5, or 0.2%, to $ 2,457 a tonne, the fourth consecutive decline.
* March London cocoa LCCc1 set 8 pounds, or 0.5%, at 1,676 pounds per ton.
* “The ideas are that demand will improve only slightly, if at all, and that production in West Africa appears to be good this year,” said Jack Scoville, analyst at The Price Futures Group, based in Chicago.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.