The futures contracts cocoa of New York on ICE closed lower on Wednesday, with a rebound in producer sales helping to stop the recent rise in prices, while the raw sugar It is coffee also fell.
Cocoa
New York May cocoa closed down $21, or 0.7%, at $2,880 a tonne after peaking Monday at $2,923 – its highest level for a first month since December 2020.
Traders say there has been a recovery in producer sales following the rise in prices and that the market looks set to consolidate in the short term.
The recent rise has been driven in part by tight supply, particularly in Ivory Coast, the biggest producer.
London May cocoa fell 20 pounds, or 0.9%, to 2,121 pounds a tonne.
Sugar
May raw sugar was down 0.06 cents, or 0.3%, to 21.25 cents a pound.
Traders say the market is closely watching the start of the harvest in Brazil’s key south-central region, with initial progress expected to be faster than last season as the weather has dried up.
Lower-than-expected harvests in India, Thailand and the European Union continued to support prices.
White sugar for May was up $2.20, or 0.4%, to $618.40 a tonne.
Coffee
Robusta coffee for May fell $15, or 0.7%, to $2,170 a tonne.
The recent rise, which tightened its discount for arabica, was driven by strong demand against a tight supply backdrop, with shipments from top producer Vietnam lagging behind last year’s pace.
“As the cheaper variety (robusta) typically holds up better than its counterpart in a downturn, this is not entirely surprising,” Rabobank said in a report, referring to the relative strength of robusta prices.
May arabica fell 4.05 cents, or 2.3%, to settle at $1.697 a pound, the lowest in two months.
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
