Raw Sugar Prices Plummet as March Contract Concludes
In a sharp decline, raw sugar futures on ICE took a tumble on Thursday as attention turned to the expiration of the March contract. Meanwhile, cocoa saw a modest recovery following the previous session's significant drop.
Traders noted a shift in sentiment among some participants regarding the amount of sugar they were prepared to accept, a factor contributing to the substantial sell-off during the session.
Preliminary data from traders indicated that March deliveries amounted to 25,751 lots, equivalent to around 1.3 million metric tons, with Wilmar emerging as the primary deliverer.
Speculation regarding a potentially larger-than-expected crop in India exerted downward pressure on prices, leading some to anticipate a global surplus in the 2023/24 season.
However, the International Sugar Organization (ISO) contradicted this outlook by forecasting a slight global deficit in the same period.
May white sugar witnessed a 3.1% decline, settling at $615.10 a ton.
While the market experienced an anticipated setback after a remarkable 50% climb in one month, underlying fundamentals remained supportive due to poor crops in Ivory Coast and Ghana, the world's leading cocoa producers.
The International Cocoa Organization projected an increased global cocoa deficit for the ongoing 2023/24 season, attributing it to aging trees and disease contributing to reduced production in Ivory Coast and Ghana.
May New York cocoa (CC2) registered a 0.9% increase, reaching $6,049 a ton.
A Reuters poll of 10 traders and analysts suggested that both arabica and robusta coffee futures at the ICE exchange are anticipated to conclude 2024 below current levels and lower than the previous year's closing prices.
May arabica coffee (KC2) saw a 1.4% rise, reaching $1.8435 per lb.
SUGAR
The March raw sugar (SBH4) contract, which reached its conclusion on Thursday, saw a notable decrease of 1.43 cents, marking a 6% decline to 22.58 cents per lb.Traders noted a shift in sentiment among some participants regarding the amount of sugar they were prepared to accept, a factor contributing to the substantial sell-off during the session.
Preliminary data from traders indicated that March deliveries amounted to 25,751 lots, equivalent to around 1.3 million metric tons, with Wilmar emerging as the primary deliverer.
Speculation regarding a potentially larger-than-expected crop in India exerted downward pressure on prices, leading some to anticipate a global surplus in the 2023/24 season.
However, the International Sugar Organization (ISO) contradicted this outlook by forecasting a slight global deficit in the same period.
May white sugar witnessed a 3.1% decline, settling at $615.10 a ton.
COCOA
May London cocoa (C2) saw a modest uptick of 28 pounds, or 0.5%, reaching 5,162 pounds per metric ton, although prices remained well below the recent record high set on Monday.While the market experienced an anticipated setback after a remarkable 50% climb in one month, underlying fundamentals remained supportive due to poor crops in Ivory Coast and Ghana, the world's leading cocoa producers.
The International Cocoa Organization projected an increased global cocoa deficit for the ongoing 2023/24 season, attributing it to aging trees and disease contributing to reduced production in Ivory Coast and Ghana.
May New York cocoa (CC2) registered a 0.9% increase, reaching $6,049 a ton.
COFFEE
May robusta coffee (RC2) ended the session with a $51, or 1.7%, gain at $3,095 a ton.A Reuters poll of 10 traders and analysts suggested that both arabica and robusta coffee futures at the ICE exchange are anticipated to conclude 2024 below current levels and lower than the previous year's closing prices.
May arabica coffee (KC2) saw a 1.4% rise, reaching $1.8435 per lb.
