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By Marcelo Teixeira and Maytaal Angel
NEW YORK/LONDON, Oct 21 (Reuters) – Arabica coffee prices on ICE hit a fresh 13-month low on Friday, accumulating losses of nearly 13% for the last two weeks, amid an upbeat supply outlook and ongoing concerns about surging inflation and a weakening global economy.
COFFEE
* December arabica coffee KCc1 settled down 0.15 cent, or 0.1%, at $1.909 per lb, having touched its lowest since September 2021 at $1.8620.
* Arabica lost 2.95% in the week and 12.76% for the last two weeks.
* “Coffee futures have shaken off concerns as to tight global inventories and instead seen prices fall on an improving
weather outlook in Brazil and a deteriorating consumption environment,” said Fitch Solutions in a note.
* Brazil’s 2022/23 coffee crop was projected at 57.3 million 60-kg bags compared to a September estimate of 58.2 million bags, consultancy Safras & Mercado said.
* Dealers noted sales in top producer Brazil have almost completely stalled, with farmers reluctant to clinch deals at low prices.
* January robusta coffee LRCc2 fell $45, or 2.2%, at $1,996 a tonne.
SUGAR
* March raw sugar SBc1was little changed at 18.38 cents per pound, having hit its lowest in two weeks at 18.26 cents.
* The contract lost 2.44% in the week.
* Dealers said the market has a bearish taint amid a growing view that a decent-sized production surplus will be seen in the global season that started this month, especially if demand starts to fall away as economic growth stalls.
* December white sugar LSUc1 rose $5.10, or 1.0%, at $533.00 a tonne, recovering part of the losses from previous sessions, but still closing the week with a heavy net loss 4.7%.
COCOA
* December New York cocoa CCc1 fell $22, or 0.9%, to $2,306 a tonne. The contract lost 3% in the week.
* North America’s cocoa grindings, a measure of demand, fell 3.37% in the third quarter from a year earlier to 119,244 tonnes, in line with market expectations, data showed.
* Asia’s third-quarter cocoa grind rose 9.5% year-on-year to 231,080 tonnes, data showed.
* March London cocoa LCCc2 rose 6 pounds, or 0.3%, to 1,907 pounds per tonne, helped by continued weakness in sterling GBP=.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Devika Syamnath and Shailesh Kuber)
((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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