The futures contracts coffee arabica fell on ICE on Friday, further extending losses after a four-week peak, while raw sugar retreated as markets weighed the mixed crop outlook in the Brazil and in the midst of a predominantly negative macroeconomic scenario.
Coffee
March arabica fell 2% to $1.6260 a pound. The contract ended down 2.4% on Thursday, pulling back from a four-week high earlier in the session.
A dollar rebound as US employment data USA raised doubts about a possible slowdown in interest rate hikes, put some pressure on prices.
Dealers say the market does not have a clear direction on light volumes, with participants hoping for a firmer picture on Brazil’s next crop.
January Robusta coffee fell 0.1% to $1,888 a tonne.
Sugar
O sugar March gross lost 0.6% to 19.48 cents dollar per pound, but continued above the two-and-a-half-week low hit earlier in the week.
Sugar prices have been constrained by expectations of a shift to a market surplus, amid favorable production prospects in Brazil.
However, prices continued to be supported by a prolonged period of rain in the south and southeast of Brazil, which should affect the progress of the sugarcane harvest.
White sugar for March dropped 0.9% to $532.90 a tonne.
Source: Moneytimes
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