Commodities

SOFTS-Raw sugar futures slide; arabica coffee also down

Credit: REUTERS/KHALID AL-MOUSILY

Raw sugar futures on ICE slid to a more than two-week low on Monday, weakened partly by improving crop outlooks in several key producing countries, while arabica coffee prices also fell.

Adds background, updates prices

LONDON, June 14 (Reuters) - Raw sugar futures on ICE slid to a more than two-week low on Monday, weakened partly by improving crop outlooks in several key producing countries, while arabica coffee prices also fell.

SUGAR

* July raw sugar SBc1 fell by 0.58 cents, or 3.3%, to 16.96 cents per lb by 1348 GMT after slipping to 16.93 cents, the weakest level since May 27.

* Dealers said supplies appeared ample, boosted by the strong pace of production in Centre-South Brazil, while the prospects for 2021/22 season crops in key Asian producers India and Thailand were favourable.

* Commodity trader and supply chain services company Czarnikow on Monday forecast a global surplus of 1.5 million tonnes in 2021/22 and 2.7 million tonnes in the current 2020/21 season, driven by rising production.

* Rains in India have helped to improve the production outlook.

* "Cane growing conditions remain promising (in India) with plenty of rain. It was India's second-wettest May in over 100 years and the monsoon rains have arrived on time," Czarnikow said, adding that Indian production should exceed 30 million tonnes in 2021/22 for the second consecutive season.

* Speculators have also been scaling back net long positions in both raw sugar and arabica coffee.

* August white sugar LSUc1 fell by $10.30, or 2.3%, to $441 a tonne.

COFFEE

* September arabica coffee KCc2 fell by 4.25 cents, or 2.7%, to $1.5535 per lb.

* Dealers noted there had been some rain in Brazilian coffee areas and more was forecast during the next few days, though dry conditions in the world's top producer remained a concern.

* September robusta coffee LRCc2 fell by $31, or 1.9%, to $1,588 a tonne.

COCOA

* September London cocoa LCCc2 rose by 4 pounds, or 0.25%, to 1,626 pounds a tonne.

* Above-average rainfall was recorded in Ivory Coast's cocoa regions last week, raising expectations for a strong finish of the April-to-September mid-crop cocoa harvest, farmers said on Monday.

* September New York cocoa CCc2 rose by $13, or 0.5%, to $2,415 a tonne.

(Reporting by Nigel Hunt Editing by Bernadette Baum and David Goodman )

((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; 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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