Commodities

SOFTS-Raw sugar dips from multi-year highs, coffee also falls

Credit: REUTERS/RUPAK DE CHOWDHURI

Raw sugar futures on ICE slipped on Tuesday after hitting 4-1/2 year highs in the previous session, with signals from wider financial markets broadly negative and traders awaiting Brazilian output data later in the session.

LONDON, Oct 12 (Reuters) - Raw sugar futures on ICE slipped on Tuesday after hitting 4-1/2 year highs in the previous session, with signals from wider financial markets broadly negative and traders awaiting Brazilian output data later in the session.

Coffee also slipped while cocoa rose.

SUGAR

* March raw sugar SBc1 ​​slipped 0.2% to 20.29 cents per lb at 1124 GMT​​, having touched 20.61 cents on Monday for its highest since late February 2017.

* A sell-off in global equities extended into Tuesday on signs that soaring energy prices have put a dampener on economic growth, triggering fears over sustained inflation and policy tightening. MKTS/GLOB

* Dealers said that sugar should remain well supported overall, citing a growing view that end-users will soon need to replenish stocks and that India selling will only emerge around 21 or even 21.50 cents.

* France's farm ministry raised its 2021 sugar beet output estimate to 34 million tonnes from 33.1 million a month ago, up 29.6% on last year but 8.3% below the five-year average.

* December white sugar LSUc1 edged up 0.1% to $522.20 a tonne.

COFFEE

* December arabica coffee KCc1 slipped 0.3% to $2.0355 per lb but was still up 5% this month.

* Dealers said there was talk that global freight issues have sparked a run on coffee stocks as demand for one of the world's favourite drinks holds firm.

* They noted ICE arabica stocks are down 11.5% since the beginning of September. KC-TOT-TOT

* November robusta coffee LRCc1 fell 0.5% to $2,089 a tonne.

COCOA

* December New York cocoa CCc1 rose 0.7% to $2,700 a tonne, having hit a seven-month peak of $2,792 last week.

* December London cocoa LCCc1 rose 1% to 1,878 pounds per tonne​.

(Reporting by Maytaal Angel Editing by David Goodman)

((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters Messaging: maytaal.angel.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.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More