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SOFTS-Cocoa hits three-week low on excess supplies; sugar down

SOFTS-Cocoa hits three-week low on excess supplies; sugar down

reuters.com · 09/01/2021 14:22
SOFTS-Cocoa hits three-week low on excess supplies; sugar down

Updates with closing prices, adds comments

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


* December London cocoa LCCc2 ​​​settled up 2 pounds, or 0.1%, at 1,759 pounds per tonne​, having hit its lowest level since Aug. 10 at 1,740.

* December New York cocoa CCc2 fell $2, or 0.1%, to $2,538 a tonne, having also hit its lowest level 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

* "Both markets were lower on weaker demand ideas. Selling came from speculators," said a U.S. broker.

* Citi 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.


* November robusta coffee LRCc2 settled up $40, or 2%, at $2,066 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.

* Meanwhile, robusta supplies are tightening 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 fell 0.25 cent, or 0.1%, at $1.9565 per lb.


* October raw sugar SBc1 ​settled down 0.17 cent, or 0.9%, at 19.67 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.

* Brazil exported 2.6 million tonnes of sugar in August versus 3.14 million tonnes a year earlier.nL1N2Q320R

* October white sugar LSUc1 was unchanged at $483.30 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 Marcelo Teixeira and Maytaal Angel
Editing by Mark Potter and Amy Caren Daniel)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))