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Updates prices, adds dealer comment
PARIS, Dec 2 (Reuters) – Arabica coffee futures fell on Friday to move further back from a four-week peak, while raw sugar inched down as the markets assessed mixed crop prospects in Brazil and a choppy dollar.
COFFEE
* March arabica coffee KCc2 was down 1.7% at $1.6295 per lb by 1641 GMT. The contract ended down 2.4% on Thursday in a pullback from a four-week high earlier in the session.
* A rebound in the dollar, as U.S. employment data raised doubts over a possible slowing in interest rate hikes, put some pressure on prices.
* Dealers said the market lacked clear direction in light volumes, with participants waiting for a clearer picture on Brazil’s next crop.
* Strong Brazilian production is expected by many in the market, although some participants see risks to the crop.
* Brazilian farmers will produce a minimum of 50 million and a maximum of 56 million bags of coffee next year as production areas continue to be negatively impacted by weather, according to a report by independent analyst SpillingTheBeans.
* The outlook was at the low end of estimates for next year’s Brazilian crop.
* A rise in exchange arabica stocks remained a bearish influence on prices.
* January robusta coffee LRCc1 was down 0.1% at $1,890 a tonne.
* Coffee prices in Vietnam remained flat on Thursday from a week ago, traders said on Thursday.
SUGAR
* March raw sugar SBc1 was down 0.1% at 19.61 cents per lb, but continued to hold above a 2-1/2 week low struck at the start of the week.
* Sugar prices have been capped by expectations of a shift to a market surplus amid favourable production prospects in Brazil.
* Brazil exported 4.07 million tonnes of sugar in November, 53% more than a year ago and the highest monthly volume of the year.
* However, prices remained underpinned by a prolonged period of rain in Brazil’s south and southeastern regions that is expected to hurt cane harvest progress and also impact sugar loading operations in Paranagua, the country’s No. 2 port.
* March white sugar LSUc1 was 0.7% lower at $534.70 a tonne.
COCOA
* March New York cocoa CCc2 was up 0.8% at $2,538 a tonne.
* The market was underpinned by an upward revision to the International Cocoa Organization’s global deficit forecast for the 2021/22 season.
* March London cocoa LCCc2 fell 0.6% to 1,968 pounds per tonne, partly owing to strength in sterling GBP= against the dollar.
(Reporting by Gus Trompiz; Editing by Jan Harvey and Louise Heavens)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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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