Raw sugar futures on ICE fell to a near-three-year low on Monday as strong cane crushing in top producer Brazil kept the market under pressure. Arabicacoffee futures on ICE Futures US dropped for the fifth straight day on follow-through weakness and pressure after s report last week showed speculators had shrunk their net short position. Cocoa on ICE and Liffe were little changed as dealers looked to the beneficial rain in main growing region West Africa.
July raw sugar futures closed down 0.08 cent, or 0.5 percent, at 16.81 cents a lb, after dipping to 16.80 cents, their lowest since July 2010. “Good Brazilian centre-south crushing conditions have raised expectations for abundant global supplies. This should continue to act as a significant headwind to global sugar prices,” analyst Luke Mathews of Commonwealth Bank of Australia said in a market note. Dealers said physical buyers were waiting to purchase as they expected prices to head lower.
“Everybody is waiting for Brazil to be in full swing, as they think the price will be lower once Brazil’s crop is coming in large quantities,” said a London-based broker. August white sugar on Liffe eased $3.10, or 0.6 percent, to settle at $474.40 a tonne.