Raw sugar prices fall, coffee and cocoa also weaken

Monday, 8 January 2018 00:00 - - {{hitsCtrl.values.hits}}

London (Reuters): Raw sugar and coffee futures fell on Friday with a firmer dollar and a retreat in crude oil helping to halt recent run-ups, while cocoa prices also weakened.

Sugar

March raw sugar was off 0.07 cent or 0.5% at 15.18 cents a lb at 1224 GMT. The front month rose to a peak of 15.37 cents on Wednesday, its highest since 28 November. Dealers said a slightly stronger dollar and a decline in crude oil prices helped to weigh on prices.

The market, however, remained underpinned by the prospect of index fund buying starting on Monday as funds rebalance after sugar’s poor performance in 2017.

Dealers said the market would keep a close watch on CFTC data to be issued later on Friday to see if speculators had further trimmed a net short position. March white sugar was down $ 0.40, or 0.1%, at $ 398.30 a ton.

Coffee

March arabica coffee was off 1.40 cents, or 1.1%, at $ 1.2810 per lb, extending its retreat from a 2-1/2 month high of $ 1.3135 set on Wednesday.

Dealers said the recent run-up had been largely driven by short covering and there appeared to be little interest in taking fresh long positions at current levels.

“The trading volumes have remained thin in recent sessions but have favoured the downside suggesting lack of appetite for current prices,” said Sucden Financial technical analyst Geordie Wilkes in a market note.

March robusta coffee fell $4, or 0.2%, to $1,724 a ton.

Cocoa

March London cocoa was down 16 pounds ($ 22), or 1.2%, at 1,351 pounds a ton. The front month had fallen to a three-week low of 1,322 pounds on Thursday before rebounding in late trade.

Dealers said the current strong flow of cocoa to ports in Ivory Coast was keeping the market on the defensive although it was seeing sporadic short covering rallies.

March New York cocoa fell by $ 26, or 1.4%, to $ 1,879 a ton.