Raw Sugar Prices Ease, Arabica Coffee Rebounds
Raw sugar futures were slightly lower on Tuesday as rains in Brazil improved the outlook for cane crops, while arabica coffee rebounded following a drop in prices in the previous session.
March raw sugar was down 0.05 cents, or 0.3%, at 14.93 cents per lb at 1443 GMT, slipping back further from the prior session's one-month high of 15.13 cents.
Dealers said favourable weather for crop development in Brazil should limit the scope for further gains following the market's recent run-up.
March white sugar was unchanged at $408.60 a tonne.
Speculators cut net long positions in raw sugar and New York cocoa in the week to 21 December, but raised a net long in arabica coffee.
March arabica coffee rose 2.1 cents, or 1.7%, to $1.2545 per lb, with the market largely recouping the prior session's losses.
Dealers said a strengthening in Brazil's real currency on Tuesday was supportive. A stronger real decreases dollar-denominated prices in local currency terms and can curb producer sales, including hedging operations with futures.
Industry buying has also picked up after the recent decline in prices, they added.
March robusta coffee futures were up $1, or 0.1%, at $1,384 a tonne.
Elsewhere, March New York cocoa was down $34, or 1.3%, at $2,526 a tonne.
Dealers noted the weather in Ivory Coast remained favourable for the mid-crop, potentially adding to already ample supplies, particularly given weakness in demand due to the COVID-19 pandemic.
March London cocoa fell 6 pounds, or 0.35%, to 1,685 pounds a tonne.