SOFTS-White sugar futures slip back, cocoa also down

  • Reuters
  • Commodities News
SOFTS-White sugar futures slip back, cocoa also down
Credit: © Reuters.

(Adds comment, updates prices)

LONDON, Feb 3 (Reuters) - White sugar futures on ICE (NYSE: ICE ) were lower on Wednesday, easing back after reaching a near four-year peak in the prior session, while cocoa prices also fell.

SUGAR

* March white sugar LSUc1 ​​fell $2.20, or 0.5%, to $461.40 a tonne by 1448 GMT.

* The front-month contract had climbed to a peak of $470.40 on Tuesday, its highest since April 2017.

* Dealers said the market was consolidating after a recent run-up but it remained underpinned by nearby supply tightness.

* Commerzbank (DE: CBKG ) said in a market note that robust physical demand coupled with a shortage of containers in countries such as India had created tightness in the physical market.

* "This is prompting customers who need sugar urgently to seek it on the exchange. Furthermore, production is disappointing in regions like Thailand and the EU, which are conventional white sugar suppliers," the bank added.

* March raw sugar SBc1 fell 0.19 cents, or 1.2%, to 16.10 cents per lb.

COCOA

* March New York cocoa CCc1 was down $50, or 1.9%, at $2,549 a tonne, with the front month's premium CC-1=R also weakening to around $86 from about $100 at the close on Tuesday.

* Dealers noted the front month's premium had led to more cocoa being graded, with certified stocks rising to 259,930 bags as of Feb. 2, up from 179,040 bags a week earlier.

* Fundamentals also remained bearish, with many expecting a substantial global surplus in the current 2020/21 season as the COVID-19 pandemic curbs demand.

* March London cocoa LCCc1 fell 21 pounds, or 1.2%, to 1,742 pounds a tonne.

COFFEE

* March arabica coffee KCc1 fell 0.25 cents, or 0.2%, to $1.2315 per lb.

* March robusta coffee LRCc1 was up $7, or 0.5%, at $1,306 a tonne.

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