Soft commodities price watch: Raw sugar erases gains
iNVEZZ.com, Thursday, October 24th: Raw sugar today erased the gains it made earlier this week on the back of a fire in top producer Brazil.
Copersucar, the largest sugar trader in Brazil, on Friday reported that fire had damaged six of its warehouses at the port of Santos, destroying nearly 180,000 tonnes of raw sugar. The announcement pushed the price of the commodity as much as 6.1 percent higher on the day of the fire, taking it to $0.2016 a pound, the highest level in almost a year.
Today, the sugar price has retreated, with the contract for delivery in March on ICE Futures US in New York down 1.66 percent to $0.1896 a pound as at 13:28 BST. The price was $0.1900 a pound on October 17, the day before the Brazilian fire broke out. Refined, or white sugar for December delivery on NYSE Liffe in London has today fallen to $503.80 a tonne.
The cocoa price for December delivery had fallen 0.33 percent to be at $2,705 a tonne in New York and had shed 0.2 percent to stand at £1,713 pounds a tonne in London as of 13:32 BST.
Arabica coffee price for delivery in December gained 0.09 percent to $1.1065 a pound on ICE. Earlier, prices fell to $1.104 a tonne, the lowest since 2009. Robusta coffee for delivery in January was unchanged at $1,586 a tonne on NYSE Liffe after falling yesterday to its lowest level since 2010.
**Grain prices decrease**
Grain futures have been broadly down today, with wheat retreating but remaining near a four- month high hit earlier in the week, as concerns over crop prospects from China to South America fuelled expectations of increased demand for US supplies.
According to researcher Oil World, the worst drought in 50 years in areas of Argentina, South America’s biggest wheat exporter, had resulted in “irreversible damage” to the crop. Wheat-growing areas on the North China Plain may also be drier than normal this winter, with crops dependent on rainfall in the spring,
AccuWeather said this week. Supply trends in Russia have also been unfavourable as of recent.
Rising for a third consecutive day, the wheat price for December delivery on the Chicago Board of Trade (CBOT) this morning climbed as much as 0.1 percent to $7.025 a bushel. Later during the session, however, the contract retreated and as of 13:14 BST, the grain traded 0.36 percent down at $6.9850 a bushel. Milling wheat futures in Paris also dropped 0.2 percent.
!m[Wheat retreats but remains near four-month high amid growing demand for US supplies](/uploads/story/6322/thumbs/pic1_inline.jpg)
The soybean price for January delivery in Chicago declined 0.34 percent to $13.0125 a bushel. Corn for
December delivery was 0.40 percent down at $4.4275 a bushel.
Among other agricultural commodities, the rubber price today advanced from a two-week low after data showed China’s manufacturing strengthened more than anticipated this month, boosting demand from the world’s largest consumer of the commodity used in tires. The contract for delivery in March on the Tokyo
Commodity Exchange (TOCOM) climbed as much as 0.6 percent to 263 yen a kilogramme ($2,703 a metric tonne). Futures earlier fell to 257.8 yen, the lowest price level since October 8.
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