Softs: Robusta coffee slides after rallying to fresh 15-year peak

Nitten

22/12/2023 15:45

(Updates prices)
       LONDON, Dec 22 (Reuters) - Robusta coffee futures on ICE
slid on Friday after rallying to fresh 15-year peaks in the
prior session as farmers in top producer Vietnam refrained from
selling on hopes prices would rise even further.
    Trading volumes were thin, with London-based robusta, white
sugar and cocoa futures all closing early, at 1223 GMT, ahead of
the Christmas holidays.
          
    COFFEE
    * March robusta coffee  LRCc2  closed down 4.4% at $2,834 a
metric ton, having hit its highest in at least 15 years at
$2,970 on Thursday.
    * Local dealers in Vietnam said there was talk in the market
of farmers delaying or defaulting on beans previously sold at
much lower prices than today's spot figures.
    * They added there had been some lifting of short futures
positions by traders as a result, and that this had helped fuel
the futures price rally. 
    * March arabica coffee  KCc1  was down 1.6% to $1.9100 per
lb at 1537 GMT, having hit its highest since April on Tuesday.
    * Dealers said rains had been reported in some of top
arabica producer Brazil's coffee growing regions, with forecasts
showing more downpours this weekend and onwards.
            
    SUGAR
    * March raw sugar  SBc1  rose 1.9% to $20.60 per lb, after
sliding to its weakest since early March on Thursday. 
    * Dealers said the market looked like it wanted to see what
lay below 20 cents short term, especially as top producer
Brazil's output soars and weather concerns take a backseat, for
now. 
    * Longer term, however, Brazil will struggle to export its
vast supplies, they said, putting sugar in prime position for an
upwards correction, especially given ongoing weather concerns in
India and Thailand.
    * French sugar major Tereos  TEREO.UL  said its sugar output
in Brazil grew 19% in the 2023/2024 harvest, along with
better-than-expected sugarcane crushing.
    * Egypt's Dakahlia Sugar Manufacturing and Refining Company
is seeking 50,000 metric tons of VHP Brazilian raw cane sugar in
a tender, according to a company statement.
    * March white sugar  LSUc1  ended up 0.5% to $589.50 a ton.
        
    COCOA
    * March London cocoa  LCCc1  closed down 0.3% to 3,558
pounds a ton.
    * March New York cocoa  CCc1  dipped 0.1% to $4,283 a ton.

 (Reporting by Maytaal Angel
Editing by Emelia Sithole-Matarise and Mark Potter)
 ((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters
Messaging: maytaal.angel.thomsonreuters.com@reuters.net)
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