Commodities

SOFTS-London cocoa slips to three-week low, sugar also falls

Credit: REUTERS/PETER NICHOLLS

London cocoa futures on ICE Futures Europe dipped to a three-week low on Monday, with weak processing margins helping to curb demand for beans, while sugar prices also fell.

Adds quote, updates prices

LONDON, Oct 18 (Reuters) - London cocoa futures on ICE Futures Europe dipped to a three-week low on Monday, with weak processing margins helping to curb demand for beans, while sugar prices also fell.

COCOA

* March London cocoa LCCc2 fell 0.1% to 1,814 pounds a tonne by 1343 GMT after dipping to a three-week low of 1,799 pounds.

* Dealers said that third-quarter grind data showed demand had rebounded after slumping during the COVID-19 pandemic, though year-on-year gains were lower in North America (+4.3%) and Asia (+4.1%) than Europe (+8.7%).

* "Market participants appear to expect demand in Europe to grow less dynamically now, too; the pre-pandemic level having already been exceeded. Lower grinding is already anticipated in the fourth quarter in view of the fall in margins," Commerzbank said in a note.

* December New York cocoa CCc1 fell 0.5% to $2,595 a tonne.

SUGAR

* March raw sugar SBc1 fell 1.4% to 19.53 cents per lb after slipping to a two-week low of 19.41 cents.

* Dealers said that funds appeared to be continuing to scale back long positions after recent rains in the Centre-South region of Brazil improved the outlook for next year's cane crop.

* "Recent rainfall in CS Brazil may have diminished bullish enthusiasm in the short term," analysts Green Pool said in a weekly update.

* Speculators cut their net long position in raw sugar on ICE U.S. in the week to Oct. 12, the U.S. Commodity Futures Trading Commission said on Friday.

* China imported 870,000 tonnes of sugar in September, up 61.1% from the same month last year, according to data released by the General Administration of Customs on Monday.

* December white sugar LSUc1 fell 1.4% to $512.70 a tonne.

COFFEE

* December arabica coffee KCc1 rose 0.2% to $2.0375 per lb.

* January robusta coffee LRCc2 was down 0.1% at $2,119 a tonne.

(Reporting by Nigel Hunt Editing by David Goodman and David Evans)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net ))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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