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SOFTS-Cocoa hits three week low on excess supplies

SOFTS-Cocoa hits three week low on excess supplies

reuters.com · 09/01/2021 09:56
SOFTS-Cocoa hits three week low on excess supplies

Updates prices

- Cocoa futures on ICE hit a three week low on Wednesday due to excess supplies, while robusta coffee was not far off Tuesday's four year high.

COCOA

* December London cocoa LCCc2 ​​was down 0.8% to 1,743 pounds per tonne at 1347 GMT, having hit its lowest since Aug. 10 at 1,740.

* December New York cocoa CCc2 fell 0.8% to $2,520 a tonne, having also hit its lowest since Aug. 10 at $2,517.

* The International Cocoa Organization on Tuesday forecast a global cocoa surplus of 230,000 tonnes in the current 2020/21 season, up from a previous projection of 165,000 tonnes. nL1N2Q21QN

* Citi said last month it sees a cocoa surplus of 300,000 tonnes this season, but added the market is likely to be a bit more balanced in 2021/22 as demand rebounds and supply growth ebbs or even reverses.

COFFEE

* November robusta coffee LRCc2 rose 1.3% to $2,052 a tonne, after hitting the highest since September 2017 on Tuesday at $2,070.

* There is strong substitution demand for robusta at the moment due to the recent surge in prices for arabica coffee after frost damage to top producer Brazil's crop.

* Robusta supplies are tightening, meanwhile, amid shipping congestion and coronavirus lockdowns in top producer Vietnam.

* Indonesia's Lampung province, a key robusta producing region, exported 6,250.69 tonnes of the bean in August, down 70.5% from the same month last year, data showed. nJ9N2N4021

* December arabica coffee KCc2 rose 0.3% to $1.9645 per lb after touching a one-month high of $2.0155 on Tuesday.

SUGAR

* October raw sugar SBc1 ​rose 0.2% to 19.87 cents per lb.

* Dealers said sugar will likely consolidate after failing to break above August's 4-1/2 year high, with weak demand offsetting the decline in output from top producer Brazil after dry weather and frost damage.

* October white sugar LSUc1 rose 0.5% to $485.60 a tonne.

* Ukraine is likely to increase its white sugar output from sugar beet by about a third to 1.4 million tonnes, the economy ministry said. nL1N2Q30MH



(Reporting by Maytaal Angel
Editing by Mark Potter)

((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters Messaging: maytaal.angel.thomsonreuters.com@reuters.net) ))