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NEW YORK/LONDON, Sept 23 (Reuters) – Sugar, coffee and cocoa futures on ICE closed all down on Friday on heightened concerns about a global economic downturn against the backdrop of rising interest rates.
SUGAR
* October raw sugar SBc1 settled down 0.21 cent, or 1.1%, at 18.28 cents per lb.
* Dealers said the market has some support from short-term supply tightness in both raw and white sugar although there is still generally expected to be a global surplus in the 2022/23 season.
* “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$4.20, or 0.8%, at $532.70 a tonne.
* A U.S. judge on Friday ruled in favor of U.S. Sugar Corp’s plans to buy rival Imperial Sugar Co.
COFFEE
* December arabica coffee KCc1settled down 3.1 cents, or 1.4%, at $2.2045 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.
* Brazil’s government admitted that its estimates for coffee crops over recent years have problems and need improvements.
* November robusta coffee LRCc2 fell $6, or 0.3%, at $2,232 a tonne.
COCOA
* December New York cocoa CCc1fell $74, or 3.2%, to $2,247 a tonne.
* “Index funds – the whales in agriculture futures – are getting nervous,” said Peak Trading Research in a note, saying those funds are dumping long positions as inflation expectations fall amid rising interest rates.
* December London cocoa LCCc1fell 4 pounds, or 0.2%, to 1,857 pounds per tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan, Paul Simao and David Gregorio)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
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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