Soft commodities watch: Coffee price trims yesterday’s rally
Soft commodity futures have been mostly down so far in today’s trading session. Arabica coffee futures have corrected lower following sharp gains during the previous session, while grains were all trading in negative territory.
Arabica coffee futures for delivery in May were down over one percent, to $1.443 as of 14:13 BST. During the previous session the benchmark hit $1.4735, the highest level for a front-month contract since February 23.
The benchmark has failed to attract follow-through buying following its four percent rally during the previous day, spurred by a firming Brazilian currency, when the London market remained shut for the long weekend. At last check, London May robusta coffee was up about 1.5 percent at $1,805.00 a tonne.
Raw sugar futures edged downward amid light trading, with abundant supplies weighing on prices. ICE Raw sugar futures for settlement in May had shed 0.32 percent of their value to 12.54 cents per lb as of 14:15 BST. The contract has rallied 5.2 percent since hitting a six-year low of 11.91 cents last week. Reuters cited Nick Penney, senior trader with Sucden Financial Sugar, as saying:
“The fundamental situation hasn’t changed dramatically with rains still expected in the second half of this month possibly hampering harvesting activities in centre-south Brazil”. At last check, front month white sugar futures were down 0.49 percent at $365.500 per tonne.
Cocoa for May delivery was trading 0.21 percent higher at £1,944.00 per tonne in London. Meanwhile, the US benchmark had gained $6.5 at $2,796.50 in New York.
In grains, wheat futures for May delivery had declined over one percent, to $ $5.226 a bushel on the Chicago Board of Trade (CBOT) as of 14:17 BST. The contract fell under downward pressure as rain forecasts eased fears over potential yield losses in the United States.
CBOT corn futures for May delivery had lost 0.27 percent of their value, to $3.843 a bushel as of 13:45 BST. The front-month soybeans contract had declined 0.33 percent, or 3.27 cents, to $9.751 per bushel as of 13:44 BST.