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Updates with market activity, comments and closing prices
NEW YORK/LONDON, Jan 6 (Reuters) – Arabica coffee and raw sugar futures on ICE lost more than 5% during the first trading week of 2023, mostly due to improving production prospects in key countries.
COFFEE
* March arabica coffee KCc1 settled down 2.25 cents, or 1.4%, on Friday at $1.583 per lb after dipping to a near 4-week low of $1.5715.
* The contract lost 5.38% during this first week of trading in the new year.
* “An end to Brazil’s dry spell eased concerns over Brazil’s crop. Additionally, the latest ICE arabica coffee inventory data showed another increase in global inventories,” Fitch Solutions said in a note.
* Brazil has been wet this week and there is forecast for more rain, which could improve crop prospects.
* ICE-certified coffee stocks rose to a six-month high of 830,272 bags on Jan. 6. There were 206,704 bags pending grading.
* March robusta coffee LRCc2 fell $7, or 0.4%, at $1,825 a tonne. Robusta futures gained 1% in the week.
SUGAR
* March raw sugar SBc1 settled down 0.38 cents, or 2.0%, at 18.96 cents per lb after setting a near two-month low of 18.94 cents.
* The front-month contract lost 5.39% in the first week of trading in 2023.
* Dealers said some funds were liquidating long positions, with production in India and Thailand exceeding some forecasts, while changes to the Brazilian government’s fuel policy are set to encourage cane mills to favour sugar over ethanol.
* Speculator’s long position in raw sugar is the largest in 12 months, but it started to come down.
* March white sugar LSUc1 fell $7.50, or 1.4%, at $527.20 a tonne. The contract lost 4.9% in the week.
COCOA
* March New York cocoa CCc1 fell $12, or 0.5%, to $2,605 a tonne. New York cocoa was flat for the week.
* March London cocoa LCCc1 settled down 23 pounds, or 1.1%, to 2,047 pounds per tonne.
* Top cocoa producer Ivory Coast exported 99,950 tonnes of raw cocoa beans in October and November 2022, down 47% from a year ago.
* Ivory Coast exported 95,376 tonnes of semi-finished cocoa products in October and November 2022, up nearly 16% from a year ago.
(Reporting by Marcelo Teixeira, Nigel Hunt and Maytaal Angel Editing by David Goodman, Barbara Lewis and Krishna Chandra Eluri)
((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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