SOFTS-Raw Sugar Falls to Six-Week Low as Funds Trim Net Long
Category: Sugar
(Reuters) – Raw sugar futures on ICE fell to a six-week low on Monday as funds continued to scale back a huge net long position while coffee and cocoa prices also weakened.
March raw sugar was off 0.29 cents, or 1.3 percent, at 21.87 cents per lb at 1313 GMT after dipping to a low 21.80 cents, the weakest level for the contract since Sept. 16.
Speculators reduced their bullish sugar position for the fourth straight week on ICE Futures U.S. in the week to Oct. 25, Commodity Futures Trading Commission data showed on Friday.
“The positions report suggests investors had sold some of their long position as of last Tuesday. Investors have probably sold some since, too,” said Commonwealth Bank of Australia analyst Tobin Gorey.
“Nonetheless, investors’ long position is probably still huge. And, when the market is faltering, the position lacks a raison d’etre.”
Dealers said the market received only limited support from a report issued by Brazil cane industry group Unica, which said that the cane crush in the country’s key centre-south region was lower than expected.
December white sugar was $3.60, or 0.6 percent, lower at $585.90 a tonne.
Cocoa futures also fell, with nearby premiums weakening on waning concerns about supply tightness after a slow start to the main crop season.
Arrivals at ports in top cocoa grower Ivory Coast since the start of the season on Oct. 1 had reached about 209,000 tonnes by Oct. 30, exporters estimated on Monday, down 26 percent from the same period of the previous season.
December New York cocoa was down $41, or 1.5 percent, at $2,715 a tonne and its premium to March CC-1=R slipped to about $94 from $107 at Friday’s close.
Good rainfall across most of Ivory Coast’s main cocoa-growing regions will help to keep trees healthy through the forthcoming dry season and ensure good bean quality into February, farmers said on Monday.
March London cocoa was down 12 pounds, or 0.5 percent, at 2,191 pounds a tonne.
Arabica coffee futures also slipped, with December down 0.4 percent at $1.6485 per lb. January robusta coffee fell $9, or 0.4 percent, to $2,178 a tonne.
