Raw sugar hits 3-1/2 week low as supply prospects brighten
LONDON — ICE raw sugar futures hit 3-1/2 week lows on Thursday as supply prospects in key producing countries continue to improve, though rising oil prices kept losses in check.
* March raw sugar fell 0.4% to 19.43 cents per lb at 1454 GMT, having hit a low of 19.40.
* Dealers said raw sugar, which hit its highest since February 2017 in late December, is yet to find support as funds slowly liquidate longs.
* They noted good rains in top producer Brazil suggest a possible early start to the harvest, with higher production widely expected. Also, the Brazilian government’s fuel policy is set to prompt cane mills to favor sugar output over ethanol.
* At the same time, production in India is progressing well and the Thailand harvest is off to a good start.
* March white sugar fell 0.8% to $538.60 a tonne.
* March arabica coffee fell 0.4% to $1.6065 per lb after dipping to a three-week low of $1.5925 on Wednesday.
* Colombia’s production of washed arabica coffee fell by 12% last year to 11.1 million 60-kg bags because of extended wet weather, data showed, helping coffee.
* Overall though, arabica is under pressure from favorable weather for crop development in top producer Brazil.
* March robusta coffee fell 0.6% to $1,861 a tonne.
* Coffee prices in top robusta producer Vietnam rose this week on weather concerns, while the Indonesian market remained subdued on weaker supplies.
* March New York cocoa rose 0.7% to $2,623 a tonne.
* Trader Joe’s was sued on Wednesday by a consumer who accused the grocery chain of misleading and endangering shoppers by selling dark chocolate that contains harmful levels of lead and cadmium.
* March London cocoa rose 1.4% to 2,075 pounds per tonne. (Reporting by Maytaal Angel; Editing by Shounak Dasgupta)
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