Recasts, updates with closing prices, includes comments
NEW YORK/LONDON, Nov 26 (Reuters) – Cocoa futures on ICE fell to the lowest levels in four months on Friday as concerns about a new COVID variety drove a risk-off move by investors across financial assets including commodities.
Raw sugar hit a one-month low.MKTS/GLOB
COCOA
* March New York cocoa CCc2 closed down 4.7% at $2,396 a tonne, after plunging to $2,388 in the session, the lowest in four months.
* Dealers said cocoa was caught in the broad-based sell-off in many commodities and the market was also looking technically weak with the recent uptrend now reversed.
* The market had been boosted by a pick-up in demand but the latest coronavirus variant raised concerns about whether the recovery would be sustained.
* Cocoa was one of the hardest hit commodities during the pandemic as chocolate consumption fell without social events, travelling and conferences.
* March London cocoa LCCc2 fell 3.6% to 1,657 pounds a tonne, hitting as well a four-month low at 1,650 pounds.
SUGAR
* March raw sugar SBc1 closed 2.8% down at 19.35 cents per lb, extending the market’s retreat from a 4-1/2 year high of 20.69 cents set last week.
* “Sugar is following crude lower as it trades to its lowest point (19.15) since Oct. 25,” said a U.S. sugar broker.
* The decline accelerated as key support levels were breached including a trend line at 19.56 cents.
* Falling energy prices could lead mills in top sugar producer Brazil to make more sugar and less ethanol.
* March white sugar LSUc1 fell 1.9% to $501.40 a tonne after touching a two-month low at $495.80.
COFFEE
* March arabica coffee KCc2fell 1% at $2.4295 per lb. The market had climbed to a 10-year high of $2.4820 on Wednesday.
* Coffee suffered less amid the sell-off as the market continues to derive support from declining exchange stocks as shipments from South America are delayed both by a shortage of container shipping capacity and a reluctance of producers to sell.
* January robusta coffee LRCc1 rose 0.8% to $2,308 a tonne.
* Delays to the harvest in top robusta producer Vietnam remained a supportive factor.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Shinjini Ganguli, Pravin Char and Richard Chang)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
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