NEW YORK/PARIS: Arabica coffee futures on ICE fell on Friday to move further back from a four-week peak, while raw sugar inched down as the markets assessed mixed crop prospects in Brazil and amid a mostly negative macroeconomic outlook.
COFFEE: March arabica coffee fell 2% to $1.6260 per lb. The contract ended down 2.4% on Thursday in a pullback from a four-week high earlier in the session.
A rebound in the dollar, as US employment data raised doubts over a possible slowing in interest rate hikes, put some pressure on prices.
Dealers said the market lacked clear direction in light volumes, with participants waiting for a clearer picture on Brazil’s next crop.
A production in the range between 50-56 million bags was seen by independent analyst SpillingTheBeans, while others expect a much higher volume.
January robusta coffee fell 0.1% at $1,888 a tonne.
Coffee prices in Vietnam remained flat from a week ago.
SUGAR: March raw sugar fell 0.6% to 19.48 cents per lb, but continued to hold above a 2-1/2 week low struck at the start of the week.
Sugar prices have been capped by expectations of a shift to a market surplus amid favourable production prospects in Brazil.
Brazil exported 4.07 million tonnes of sugar in November, 53% more than a year ago and the highest monthly volume of the year.
However, prices remained underpinned by a prolonged period of rain in Brazil’s south and southeastern regions that is expected to hurt cane harvest progress.
March white sugar fell 0.9% to $532.90 a tonne.
COCOA: March New York cocoa rose 0.7% to $2,536 a tonne.
The market was underpinned by an upward revision to the International Cocoa Organization’s global deficit forecast for the 2021/22 season.
March London cocoa fell 0.4% to 1,971 pounds per tonne?, partly owing to strength in sterling against the dollar.