LONDON: Cocoa futures in New York and London fell to three-month lows on Tuesday while raw sugar rebounded modestly after the prior session’s steep decline.
COCOA
July New York cocoa was down $21, or 0.9 percent, at $2,330 a tonne at 1110 GMT after falling to a three-month low of $2,324.
Dealers said funds had been gradually scaling back a large net long position during the recent decline.
“I don’t think you have seen wholesale (fund) long liquidation and that has been part of the problem. We’ve been drip-feeding all the way down,” one dealer said.
Dealers said port arrivals in top grower Ivory Coast had also been reasonable, trailing last season’s strong pace by only 2.2 percent.
They also downplayed concerns about dry weather in Ivory Coast.
“The weather is slightly drier at the moment but I don’t see a huge problem,” one dealer said.
Weeks of below-average rainfall in parts of Ivory Coast’s main cocoa regions are raising concerns about the April-to-September mid-crop, farmers said on Monday.
July London cocoa was down 29 pounds, or 1.7 percent, at 1,664 pounds a tonne after dipping to a three-month low of 1,662 pounds.
SUGAR
July raw sugar was up 0.04 cent, or 0.3 percent, at 11.94 cents per lb. The front month fell sharply on Monday, slumping to a two-week low of 11.86 cents.
Dealers said any supportive influence from nationwide trucker protests in Brazil had dissipated, with the transport system returning to normal. Related lower fuel prices could be bearish for the sugar market by making it less attractive to use cane to make the renewable fuel ethanol.
India is set to announce support measures for the sugar sector, government sources said, aiming to cut a growing surplus and prop up local prices to help loss-making mills and millions of cane growers who make up a key voting bloc.
August white sugar rose $2.40, or 0.7 percent, to $339.80 a tonne.
COFFEE
July arabica coffee was down 0.20 cent, or 0.2 percent, at $1.2130 per lb.
July robusta coffee fell $6, or 0.3 percent, to $1,739 a tonne.
Source: Brecorder
