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NEW YORK/LONDON, April 19 (Reuters) – Raw sugar futures on ICE closed lower on Wednesday after earlier climbing to an 11-year peak, while cocoa futures rose to their highest level in 6-1/2 years.
SUGAR
* May raw sugar SBc1 settled down 0.17 cent, or 0.7%, at 24.37 cents per lb after setting an 11-year high of 24.90 cents.
* Dealers said the market was technically overbought after its recent strong advance and could fall back further in the short-term.
* The run-up has been driven partly by lower than expected production in India and several other major Asian countries.
* Delays to early harvesting in top exporter Brazil have also helped to keep supplies tight.
* “If it continues to rain in Brazil, the giant will be unable to show its teeth and supply the current red-hot spot market,” Rabobank said in a report.
* The forecast for Brazil’s main sugar region, however, is turning mostly dry towards the end of the month.
* August white sugar LSUc1 rose $4.00, or 0.6%, to $680.10 a tonne.
COCOA
* July New York cocoa CCc2 settled up $12, or 0.4%, at $2,977 a tonne after peaking at $2,988 for the highest level since August 2016.
* Dealers said a pick-up in producer selling had helped to slow the recent run-up in prices.
* They noted funds have been building long positions against the backdrop of tight supplies, particularly in top grower Ivory Coast. Demand has also been holding up well in the face of global economic woes.
* Dealers were awaiting first-quarter cocoa grind data covering North America. The data is expected to be issued around 2000 GMT on Thursday.
* July London cocoa LCCc2 was little changed at 2,275 pounds per tonne after earlier setting a 6-1/2-year high of 2,286 pounds.
COFFEE
* July robusta coffee LRCc2 settled up $7, or 0.3%, at $2,386 a tonne.
* Dealers said harvesting of Brazilian robusta (conillon) coffee was under way but the pace was slow.
* July arabica coffee KCc1 fell 2.9 cents, or 1.4%, to $2.0015 per lb after setting a six-month high of $2.0490 on Tuesday.
(Reporting by Marcelo Teixeira and Nigel Hunt Editing by David Goodman, Kirsten Donovan and Editing by Shweta Agarwal)
((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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