Raw sugar slides off 7-month peak, arabica off 13-year high
Adds comments and closing prices
NEW YORK, Sept 27 (Reuters) - Raw sugar futures on ICE slid off seven-month highs on Friday while arabica came off 13-year peaks, though both still posted weekly gains amid persistent worries over drought in top producer Brazil.
Cocoa futures rose meanwhile.
SUGAR
* October raw sugar SBc1 settled down 0.52 cent, or 2.2%, at 22.79 cents per lb. It gained 0.6% in the week, stabilising after last week's 19% surge.
* Dealers said producers were taking advantage of the recent price surge to sell, adding there were indications India might produce enough sugar to export around 2 million metric tons next season.
* Overall though, sugar remains in an uptrend. Brazil will produce 2 million tons less sugar in the 2024/25 season - or 39 million in total - due to severe drought and related wildfires, BMI said.
* Broker StoneX said Brazil will produce 2.5% more sugar or 40.6 million tons in total next season but attributed the increase to more cane being allocated to sugar over ethanol. It expects cane crushing, by contrast, to drop 3.2% due to the adverse weather.
* Russia will produce 10% less sugar next season due to adverse weather but will export at least 600,000 tons after an export ban was lifted, IKAR consultancy said.
* December white sugar LSUc1 fell 3% to $576.20 a ton.
COFFEE
* December arabica coffee KCc1 settled down 4.75 cents, or 1.7%, at $2.6915 per lb. The contract gained 7.3% in the week.
* Forecasters said Brazil's weather will remain mostly dry over the next 6-10 days in the main coffee areas, which will stress the trees further.
* Some traders cited worries about a possible port strike in the United States that could hurt the flow of containers with coffee to the world's largest consumer.
* November robusta coffee LRCc2 fell 0.8% at $5,482 a ton. It rose 2% weekly.
COCOA
* December New York cocoa CCc1 rose 2% to $8,281 a ton. It gained 8% in the week.
* Favourable weather in top grower Ivory Coast is improving the main crop outlook and is helpingkeep a lid on prices for now.
* Also, Ivory Coast has significantly curbed the hoarding of beans in September using the threat of sanctions against buyers and cooperatives, sources said.
* March London cocoa LCCc2 rose 2.7% to 4,746 pounds per ton.
Reporting by Nigel Hunt and Marcelo Teixeira; Editing by Jason Neely, Kirsten Donovan, Mohammed Safi Shamsi, Tasim Zahid and Alan Barona
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
