Commodities

SOFTS-Raw sugar extends fall, coffee and cocoa also down

Credit: REUTERS/KHALID AL-MOUSILY

Raw sugar futures on ICE closed lower on Friday, extending the market's retreat from a 2-1/2-month peak set earlier this week, while coffee and cocoa prices also fell.

Includes closing prices, adds comments

NEW YORK/LONDON, May 14 (Reuters) - Raw sugar futures on ICE closed lower on Friday, extending the market's retreat from a 2-1/2-month peak set earlier this week, while coffee and cocoa prices also fell.

SUGAR

* July raw sugar SBc1​​settled down 0.15 cent, or 0.9%, at 16.96 cents per lb. The market set a 2-1/2-month peak of 18.25 cents on Wednesday.

* The market fell more than 4% on Thursday, pressured by profit-taking by speculators and risk-off sentiment in wider financial markets.

* The situation with coronavirus in India is also seen as a bearish factor, with lockdowns hurting consumption.

* "There is plenty of white sugar available in India for the market and London has been the weaker market to date," said Jack Scoville at Price Futures Group in Chicago.

* Dealers said, however, that prices remained underpinned by concerns that dry weather will curb production in top exporter Brazil.

* Brazil fuel retailers seek a cut on ethanol blending in gasoline, citing a supply tightness.

* August white sugar LSUc1​settled down $1.90, or 0.4%, at $453.60 a tonne.

COFFEE

* July arabica coffee KCc2settled down 1.4 cent, or 1%, at $1.45 per lb.

* Dealers said the recent run-up in prices had temporarily lost momentum, with the market on track for a weekly loss after a run of four consecutive weekly gains.

* The prospect of tightening supplies in the coming months, however, continues to provide background support.

* July robusta coffee LRCc2settled down $31, or 2.1%, at $1,417 a tonne.

COCOA

* July London cocoa LCCc1​settled down 17 pounds, or 1%, to 1,689 pounds per tonne​, weighed down partly by a stronger pound versus the dollar. GBP/

* Dealers said the market was also struggling with excess supplies as the COVID-19 pandemic was curbing consumption.

* Ivory Coast cocoa grinding could drop by half to 25,000 tonnes in May, and even further in June, due to power shortages in the world's top grower.

* A total of 72,230 tonnes of cocoa was tendered against the ICE May London cocoa contract, exchange data showed on Friday.

* July New York cocoa CCc1​​settled down $28, or 1.1%, at $2,474 a tonne.

(Reporting by Marcelo Teixeira and Nigel Hunt Editing by Marguerita Choy and David Evans)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))

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

Latest Commodities Videos

    #TradeTalks: LBMA Responsible Sourcing Program

    LBMA CEO Ruth Crowell discusses trading data and trends in the precious metals market and the LBMA Responsible Sourcing Program.

    5 days ago

    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