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NEW YORK/LONDON, July 22 (Reuters) – Futures of sugar, coffee and cocoa all closed down on ICE on Friday amid a mostly negative day across the commodities complex amid recession fears and stock market losses. A weak Brazilian real was an additional bearish factor for coffee and sugar.
COCOA
* September New York cocoa CCc1 settled $7, or 0.3%, lower at $2,297 a tonne, erasing earlier gains that followed a stronger second-quarter Asian grind.
* Asia’s second-quarter cocoa processing rose 3.6% year on year to 228,895 tonnes, data from the Cocoa Association of Asia showed on Friday.
* Dealers said the outlook for demand later this year, however, remained a major concern.
* North American cocoa grindings fell in the second quarter of 2022 to 115,899 tonnes, down 6.29% from the same period a year earlier.
* “The price of soft commodities such as coffee and cocoa are facing downward pressure as demand responds to a weakening global economy,” Fitch Solutions said in a note.
* September London cocoa LCCc1 fell 15 pounds, or 0.9%, to 1,699 pounds per tonne.
COFFEE
* September arabica coffee KCc1 fell 9.15 cents, or 4.2%, at $2.067 per lb, although the contract had a weekly gain of 1.4%.
* Dealers said the market remained choppy with prices weighed down by good harvest progress in top producer Brazil and a weak Brazilian currency that boosts farmer selling.
* “With the exodus of long-term funds, the market becomes very susceptible to short-term volatility,” said a coffee trader.
* Prices remained underpinned, however, by falling stocks. ICE certified stocks fell to 705,727 bags, sharply down from 2.19 million bags a year ago.
* September robusta coffee LRCc2 fell $25, or 1.3%, at $1,962 a tonne.
SUGAR
* October raw sugar SBc1 settled 0.46 cents, or 2.5%, lower at 17.89 cents per lb. It lost 7% in the week.
* Dealers said the market was weakened partly by chart-based selling with technicals looking bearish after the sharp decline in prices this week.
* “Near-term momentum is on the downside,” Sucden Financial said in a note on market technicals.
* October white sugar LSUc1 fell $9.20, or 1.7%, at $523.40 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; editing by David Evans 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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