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Updates with market activity, adds comments and closing prices
NEW YORK/LONDON, Oct 19 (Reuters) – Arabica coffee prices hit a fresh one-year low on Wednesday, with dealers focused on favourable weather in top producer Brazil and growing ever more concerned about global recession risks.
COFFEE
* December arabica coffee KCc1 settled down 2.8 cents, or 1.4%, at $1.923 per lb, after touching a one-year low of $1.9015.
* Dealers noted rains in Brazil had spurred coffee tree flowering, boding well for next year’s crop. Forecasters Maxar said it expected light to moderate showers to continue over the next five days.
* In the wider financial markets, the recent recovery in world stocks lost momentum while the safe-haven dollar rose amid ongoing worries over whether higher rates to contain inflation could push the global economy into recession.
* The global coffee market is going through a transformation trend that will involve higher quality and pricier coffees, but not higher overall traded volumes, said an industry executive.
* January robusta coffee LRCc2 fell $34, or 1.7%, at $2,000 a tonne, touching the lowest since late July.
SUGAR
* March raw sugar SBc1 fell 0.02 cent, or 0.1%, at 18.65 cents per lb, having settled 0.5% lower on Tuesday.
* Dealers said supply news from India, the world’s second largest sugar exporter, was weighing on prices, with the market tipped to head lower unless macro-economic signals improve.
* Indian sugar output is expected to rise 2% to 36.5 million tonnes in the new season that began on Oct. 1, and the country is on track to have excess supply to export around 9 million tonnes.
* Dealers also said the refined market started to show weakness after a long positive trend, which is also bearish news for raws.
* “Someone, it would seem, has found some refined sugar perhaps? The balloon has deflated,” said a broker.
* December white sugar LSUc1 fell $8.50, or 1.6%, at $538.80 a tonne, a two-week low.
COCOA
* December New York cocoa CCc1 rose $3, or 0.1%, to $2,308 a tonne.
* The market is awaiting data regarding North America third quarter grinding to be released on Thursday at 4:00 PM (ET).
* March London cocoa LCCc2 rose 10 pounds, or 0.5%, to 1,889 pounds per tonne, helped by a further decline in sterlingGBP=.
(Reporting by Marcelo Teixeira and Maytaal Angel; editing by David Evans, Elaine Hardcastle, and Sandra Maler)
((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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