SOFTS-Raw Sugar Futures Close Lower as May Delivery Weak

youupdates with traders’ comments and closing prices

NEW YORK/LONDON, April 29 (Reuters)Raw sugar futures on ICE closed lower on Friday, reversing early gains as oil prices lost ground and the May contract expiry saw small delivery.

Closed arabica and robusta coffee.


* Can raw sugar SBc1 expired Friday down 0.07 cents, or 0.4%, to 19.35 cents a pound, after hitting its lowest price in more than a month at 18.80 cents on Wednesday.

* Raw sugar deliveries at the expiry of the May contract were estimated at 3,573 lots, or around 181,500 tonnes, a relatively small volume, according to preliminary information from traders on Friday.

*Delivery was considered neutral, although it raised some concerns about the Brazil crop as not much will be delivered there.

* Cane crushing in Brazil’s south-central region fell 66.9% in the first half of April compared to a year ago.

* Analyst Greenpool said a global sugar surplus of 1.41m tonnes is now expected for the 2022/23 season.

* August white sugar LSUc1 rose $1.90, or 0.4%, to $529.40 a tonne.


* July arabica coffee KNc2 gained 4.5 cents, or 2.1%, to $2.221 a pound, after hitting the lowest level since March 30 at $2.1455 on Wednesday.

* Dealers said exporters in Brazil, the top producer, were reluctant to sell, even in the face of a weakening Brazilian currency BRL=. A weak real generally encourages selling because it increases returns in local currency terms.

* On the downside, Citi said it again cut its coffee demand outlook by 0.5 million bags due to the impact of the Russian-Ukrainian war and the COVID lockdown in Shanghai.

* July robusta coffee LRCc2 rose $18, or 0.9%, to $2,107 per tonne.

* Vietnam’s coffee exports are expected to increase by 28.4% in the first four months of this year.


* July Cocoa New York CCc2 was stable at $2,567 per tonne.

* “Softer than expected first quarter cocoa grinds amid the Russia-Ukraine conflict and China lockdowns are weighing. That said, the 2021/22 cocoa balances remain in deficit given the substantial short crop in Ghana,” Citi said.

* He said prices, which have fallen over the past month from $2,700 to $2,500 a tonne, should find support around current levels.

* Cocoa July London LCCc2 fell 3 pounds, or 0.2%, to 1,806 pounds per ton.

(Reporting by Marcelo Teixeira and Maytaal Angel; editing by David Evans, Paul Simao and Aditya Soni)

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