Wednesday, 01 July 2015 18:28
LONDON: Raw sugar futures steadied on Wednesday as the market digested a moderate delivery after a contract expiry, while robusta coffee dipped with traders tracking a high July/September spread on first notice day.
Cocoa edged down in light volumes, and was underpinned by concerns over tight supplies from No. 2 grower Ghana.
Raw sugar futures were little changed above a recent 6-1/2-year low as the market took stock of a moderately sized delivery against the July contract in line with expectations.
Sugar moved sideways, consolidating after a rally on Tuesday as hedge funds and other speculators, who held their largest net short in nearly three months in the week to June 23, covered short positions.
Tuesday’s expiry of the July raws contract was estimated by traders at 9,073 contracts, or 460,900 tonnes, with Wilmar International Ltd seen as the sole receiver, just two months after it booked a record delivery.
“The expiry is not market moving,” one London-based trader said, referring to the modest delivery tonnage. In raw sugar, October futures were down 0.07 cent, or 0.6 percent, at 12.40 cents a lb at 1109 GMT.
August white sugar futures traded up $ 2.10, or 0.6 percent, to $ 372.40 per tonne.
Robusta coffee futures edged lower, with traders focused on a high July/September spread at around $ 90 per tonne.
One physical trader said he had seen a brisker flow of offers of robusta coffee from top grower Vietnam, ending a recent cycle of hoarding.
Robusta dealers awaited tender data on first notice day, expected later in the session. September robusta traded down $ 3 or 0.2 percent at $ 1,781 a tonne.
Arabica coffee futures inched down, pressured by a firmer dollar.
September arabica was down 1.3 cents or 1 percent to $ 1.3110 per lb.
September London cocoa traded down 5 pounds, or 0.2 percent, at 2,152 pounds a tonne.
September New York cocoa was down $ 19, or 0.6 percent, at $ 3,250 a tonne.
Dealers said the market may have scope to fall further, weighed down by sluggish demand and improving crop prospects in top grower Ivory Coast.
