Indian sugar mills association

Coffee, sugar ease as dollar strengthens

Date:	15 Mar 2012

Source:	The Business Line

Reporter:	Reuters

News ID:	1001

Pdf:
Nlink:

LONDON, March 14 (Reuters) - ICE arabica coffee and raw sugar futures fell in early trade, weakened partly by a strengthening dollar, but remained above lows set earlier in the week. Cocoa futures on ICE were little changed. Arabica coffee futures were weaker as the market headed down towards a 17-month low set earlier in the week. May arabicas on ICE were off 1.15 cents or 0.6 percent at $1.85 per lb at 0902 GMT. The contract slid to $1.8105 on Monday, a 17-month low for the second month. Dealers said the prospect of a global surplus in 2012/13 had helped to diminish investor appetite for the commodity. Commodities broker Marex Spectron, however, said in a report on Tuesday that the surplus would be below trend for an on-year in Brazils biennial crop cycle and future price risk was likely to be to the upside. Benchmark Liffe May robusta coffee futures were down $2 at $1,970 a tonne. Raw sugar prices fell in early trade but remained well above a two-month low set earlier this week. May raw sugar on ICE was off 0.20 cent or 0.8 percent at 23.93 cents a lb. The contract dipped to 23.26 cents on Monday, the lowest level for the front month since Jan. 13. Dealers said the prospect there could be further exports from India was also keeping the market on the defensive. Indian sugar futures slipped on Tuesday on lower-than-expected demand in the physical market amid rising inventory due to the ongoing cane crushing season, dealers said. London May white sugar futures eased $4.10 or 0.6 percent to $637.20 per tonne

News

Navigation