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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