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LONDON, Sept 23 (Reuters) – Sugar, coffee and cocoa futures on ICE were lower on Friday on heightened concerns about a global economic downturn against the backdrop of rising interest rates.
SUGAR
* October raw sugar SBc1 fell 0.3% to 18.44 cents per lb by 1026 GMT.
* Dealers said the market continued to be underpinned by short-term supply tightness in both raw and white sugar although there is still generally expected overall to be a global surplus in the 2022/23 season.
* A shift towards using more cane to make sugar rather than cane-derived biofuel ethanol in top producer Brazil should also ensure there are ample supplies in the medium-term.
* “As the outlook for the global economy continues to weaken and expectations of tighter monetary policy continue to increase the outlook for sugar prices remains bleak, with more sugar diverted towards sweetener, rather than ethanol production,” Fitch Solutions said in a note.
* December white sugar LSUc1 fell 0.9% to $532.10 per tonne.
COFFEE
* December arabica coffee KCc1 fell 0.4% to $2.2270 per lb.
* Dealers said rains in Brazil and the prospect of further showers over the next couple of weeks had improved the outlook for next year’s crop in the world’s top producer.
* “Moisture supplies will become fully replenished across much of Brazil which will aid flowering,” weather service Maxar said in a report.
* November robusta coffee LRCc2 fell 0.4% to $2,230 a tonne.
COCOA
* December New York cocoa CCc1 was down 1.9% at $2,277 a tonne.
* Production of chocolate in Brazil, the world’s fifth largest market for the product, increased 11.43% in the first half of 2022 compared with the same period a year earlier, industry group Abicap said on Thursday.
* December London cocoa LCCc1 fell 0.1% to 1,859 pounds a tonne, underpinned by a weak pound. GBP/
(Reporting by Nigel Hunt; Editing by Kirsten Donovan)
((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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