LONDON: Raw sugar futures on ICE were lower on Wednesday, extending the market’s retreat from last week’s near six-year high, while arabica coffee prices edged higher.
March raw sugar fell 0.7% to 20.18 cents per lb by 1126 GMT. The market rose to a near six-year high of 21.18 cents last week.
Dealers said funds had been scaling back a large net long position this week.
An upward revision to Brazil’s 2022/23 cane and sugar production forecasts, issued by government agency Conab, was also seen as mildly bearish.
The outlook for India’s sugar production remained a major focus, with some talk of potential downward revisions driven by reports of a sharp decline in yields in Maharashtra.
March white sugar fell 3% to $554.90 a tonne, partly adjusting to losses in the New York-based raws markets on Tuesday. London-based white sugar was shut on Tuesday for a UK public holiday.
Raw sugar rises to near 6-year high, cocoa at 8-month peak
March arabica coffee rose 0.75% to $1.6820 per lb.
Dealers said the market was well within this month’s range for the March contract of $1.5455 to $1.7435 with the downward slide seen earlier this year appearing to have run out of steam.
They noted the recent steady climb in exchange stocks had also at least temporarily abated.
ICE certified coffee stocks stood at 787,005 bags, as of Dec. 27, down slightly from a more than five month peak of 788,275 bags set on Dec. 22. There were, however, 272,195 bags pending grading.
March robusta coffee fell 0.75% to $1,861 a tonne, largely reflecting losses in the arabica market on Tuesday when the robusta market was shut.
March London cocoa rose 0.4% to 2,074 pounds a tonne.
Dealers said the market was underpinned by concerns that dry weather could reduce the size of the 2022/23 mid-crop in top producer Ivory Coast.
March New York cocoa was unchanged at $2,633 a tonne.