SOFTS-Arabica coffee hits two-month low, raw sugar also falls

Arabica coffee futures on ICE hit a two-month low on Monday, weighed down by rains in Brazil, the world’s leading producer, while raw sugar futures hit a two-week low on rising supply availability.

COFFEE * December arabica coffee KCc1 fell 1.2% to $2.0995 per lb at 12:28 GMT, reaching its lowest level since early August at $2.0850.

* According to Rabobank, the return of timely rains in Brazil, the world’s leading producer, could result in lower prices, especially if they persist in November.

* In the week ending September 27, ICE arabica coffee speculators increased their net long position by 2,720 contracts to 26,746.

* The November robusta coffee LRCc1 price increased by 0.2% to $2,150 per tonne.

SUGAR

* The March raw sugar contract SBc1 rose 0.6% to $17.79 cents per lb, after hitting a low of $17.69 on September 20.

Sugar is currently more profitable than biofuel ethanol, so mills in Brazil, the world’s leading sugar producer, are attempting to use as much cane as possible to produce sugar rather than biofuel ethanol, according to Rabobank.

* In the week ending September 27, ICE raw sugar speculators reduced their net short position by 10,992 contracts to 28,523.

* White sugar LSUc1 for December decreased 0.5% to $526.10 per tonne.

COCOA * London cocoa LCCc1 for December decreased 0.7% to 1,925 pounds per tonne. The contract priced in sterling reached a 1-1/2-year high of 1,972 pounds on Thursday, aided by the weakening of the British pound.

* According to Climate42, near-normal weather conditions are expected over the West African cocoa regions in November, and while the outlook for December is uncertain, the outlook for January through March is “slightly optimistic.”

* The December New York cocoa CCc1 price dropped 0.7% to $2,335 per tonne.

* ICE In the week ending September 27, cocoa speculators in New York increased their net short position by 3,950 contracts to 29,409.

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