Raw sugar falls 4.7pc, whites at 6 year low on abundance
Cocoa futures extended their bearish trend, with the New York market dropping to a one-year low as weak demand and stronger-than-expected port arrivals in top grower Ivory Coast continued to weigh on the market. Coffee was mixed in choppy dealings as the market awaited new fundamental news.
Raw sugar futures sank to a one-month low on bearish comments made at the Kingsman Platts Dubai Sugar Conference, which triggered technical selling as the spot contract broke below a trend line and the Jan. 6 low at 14.27 cents, traders said.
"The tone coming out of the Dubai conference is mostly bearish so far and added to the surplus of white sugar in the key trading areas; the medium term looks decidedly gloomy for producers," Sucden Financial senior trader Nick Penney said. March raw sugar on ICE closed down 0.57 cent, or 3.9 percent, at 14.22 cents, after sinking 4.7 percent to 14.10 cents, its weakest level since Jan. 5.
Data showing that speculators have nearly eradicated their net short position also attracting selling, traders said.
In top grower Brazil, much-needed rain forecasts also weighed on sugar prices, while the government there raised the national biofuel blend in gasoline to 27 percent, from 25 percent, in line with expectations, traders said. March white sugar futures on ICE closed down \\$11.60, or 3 percent, at \\$371.80 per tonne, after falling to \\$369.80, the lowest since April 2009.
In cocoa, speculative selling and March/May spreading pressured prices and buoyed volume, traders said. "The market is still seeing people leave those long positions that they've had for a very long time and create short positions," said Hector Galvan, senior market strategist for brokerage RJO Futures in Chicago.
ICE March New York cocoa closed down \\$21, or 0.8 percent, at \\$2,672 a tonne, just below the session low at \\$2,669, the lowest since January 2014.
Cocoa futures in London were also lower with May settling down 13 pounds, or 0.7 percent, at 1,868 pounds a tonne.
March arabica coffee futures finished up 0.55 cent, or 0.3 percent, at \\$1.6245 per lb, while May robusta coffee ended down \\$6, or 0.3 percent, at \\$1,948 a tonne.
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