LONDON: Raw sugar futures on ICE slipped on Tuesday after hitting 4-1/2 year highs in the previous session, with signals from wider financial markets broadly negative and traders awaiting Brazilian output data later in the session.
Coffee also slipped while cocoa rose.
March raw sugar slipped 0.2% to 20.29 cents per lb at 1124 GMT, having touched 20.61 cents on Monday for its highest since late February 2017.
A sell-off in global equities extended into Tuesday on signs that soaring energy prices have put a dampener on economic growth, triggering fears over sustained inflation and policy tightening.
Dealers said that sugar should remain well supported overall, citing a growing view that end-users will soon need to replenish stocks and that India selling will only emerge around 21 or even 21.50 cents.
France’s farm ministry raised its 2021 sugar beet output estimate to 34 million tonnes from 33.1 million a month ago, up 29.6% on last year but 8.3% below the five-year average.
December white sugar edged up 0.1% to $522.20 a tonne.
Raw sugar hits 4-1/2-year high as energy prices soar
December arabica coffee slipped 0.3% to $2.0355 per lb but was still up 5% this month.
Dealers said there was talk that global freight issues have sparked a run on coffee stocks as demand for one of the world’s favourite drinks holds firm.
They noted ICE arabica stocks are down 11.5% since the beginning of September.
November robusta coffee fell 0.5% to $2,089 a tonne.
December New York cocoa rose 0.7% to $2,700 a tonne, having hit a seven-month peak of $2,792 last week.
December London cocoa rose 1% to 1,878 pounds per tonne.