Recasts, includes closing prices and comments
NEW YORK/LONDON, Jan 26 (Reuters) – Raw sugar futures on ICE ended down on Wednesday as tensions between Russia and Ukraine kept investors at bay, though losses were limited by surging oil prices which could cut sugar production in top grower Brazil. MKTS/GLOBO/RFRX/
Robusta coffee hit the lowest price in 2-1/2 months.
SUGAR
* March raw sugar SBc1 settled down 0.29 cent, or 1.5%, at 18.49 cents per lb. Sugar has fallen for the last three sessions.
* The dollar held below a 2-1/2-week high, with investors keen to hold safe-haven assets. A strong dollar makes dollar-priced commodities including sugar costlier for non-U.S. investors.
* Dealers said speculators remained on the sidelines after a large reduction of their long position in the sweetener.
* “I think this is more continued risk-off because of macro and global political issues,” said a U.S. broker.
* Looking ahead, CovrigAnalytics said it expects the global sugar market to record a small surplus of less than 0.6 million tonnes in 2021/22 thanks to higher output in India, Thailand, Pakistan, Europe and Mexico.
* March white sugar LSUc1 fell $4.20, or 0.8%, to $499.80 a tonne.
COFFEE
* March arabica coffee KCc1 rose 1 cent, or 0.4%, to$2.389 per lb, having gained 2.1% by the close on Tuesday.
* “The arabica market has struggled to break through resistance of (about) $2.50. But supply chain issues and a tight forward balance sheet should continue to support prices at (or) above $2.20 in the short term,” said Citi in a note.
* Citi sees a small global coffee surplus of 1.1 million bags for 2022/23 but warned that recent excessive rains in key producers Brazil and Colombia could tighten the market balance going forward.
* March robusta coffee LRCc2 fell $19, or 0.8%, to $2,218 a tonne. The contract hit a 2-1/2-month low earlier at $2,211.
COCOA
* March New York cocoa CCc1 settled up $10, or 0.4%, at $2,513 a tonne.
* Citi sees the global cocoa market recording a deficit of 85,000 tonnes in the current season as demand improves.
* “Generally speaking, cocoa markets seem to be near fair value here,” it said.
* March London cocoa LCCc1 rose 12 pounds, or 0.7%, to 1,703 pounds per tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel Editing by Mark Heinrich, Mark Potter and Vinay Dwivedi)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
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