Commodities

SOFTS-Raw sugar hits three-week low as Fed rattles markets

Credit: REUTERS/KHALID AL-MOUSILY

Raw sugar futures on ICE hit their lowest in three weeks on Thursday as the dollar rallied and equities slumped after the U.S. Federal Reserve signalled it might raise interest rates at a much faster pace than originally expected. [MKTS/GLOB] [FRX/]

Updates prices

LONDON, June 17 (Reuters) - Raw sugar futures on ICE hit their lowest in three weeks on Thursday as the dollar rallied and equities slumped after the U.S. Federal Reserve signalled it might raise interest rates at a much faster pace than originally expected. MKTS/GLOBFRX/

SUGAR

* July raw sugar SBc1 ​​fell 1.3% to 16.82 cents per lb by 1356 GMT, having hit its lowest since May 24 at 16.59 cents.

* Dealers said sugar has been caught up in the Fed-inspired sell-off but should find support at current levels from end users. They noted, however, that funds have little appetite to buy at the moment.

* Suedzucker SZUG.DE, Europe's largest sugar producer, on Wednesday reported lower first-quarter earnings but remained optimistic that profits would rise in its full financial year as the coronavirus pandemic recedes.

* August white sugar LSUc1 fell 1.4% to $430.90 a tonne, having hit its lowest in more than a month at $422.

COFFEE

* September arabica coffee KCc2 fell 1.7% to $1.5275 per lb, having hit its lowest since May 26 at $1.5205.

* Arabica has been easing off a 4-1/2-year high touched this month with the return of rains in top arabica producer Brazil and coffee again flowing to ports in No. 2 producer Colombia.

* September robusta coffee LRCc2 fell 1.4% to $1,607 a tonne.

* Robusta coffee prices in top producer Vietnam rose this week, buoyed by tightening supplies, following a recent surge in ICE futures.

COCOA

* September London cocoa LCCc2 was flat at 1,624 pounds a tonne.

* September New York cocoa CCc2 ​fell 2.2% to $2,373 a tonne, having hit its lowest since May 5 at $2,370.

* Cocoa has underperformed relative to coffee and sugar this year, hampered by excess supplies and as the COVID-19 pandemic continues to hamper demand for chocolate, primarily by denting impulse purchases by shoppers.

(Reporting by Maytaal Angel; Editing by David Goodman and Jonathan Oatis)

((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.

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