Soft commodities watch: Sugar price retreats from three-week high
Soft commodity futures have been trading in negative territory today, with sugar retreating from the three-week peak hit during the previous session. Meanwhile, corn prices extended their drop ahead of the release of a US government report.
ICE Raw sugar futures for settlement in May were down over one percent to 12.83 cents per lb as of 13:51 BST. During the previous session, the benchmark reached 12.97 cents, the highest level for a front-month contract since March 18, on supply concerns from Brazil. Despite today’s drop, the contract has rebounded 8.66 percent after plummeting to a six-year trough last week. At last check, front month white sugar futures were trading near yesterday’s closing price at $366.700 per tonne.
New York cocoa was trading in the red, weighed by the strengthening US dollar. Cocoa for May delivery had shed 0.05 percent of its value at £1,941.00 per tonne in London. Meanwhile, the US benchmark was down 0.29 percent to $2,780.50 in New York. According to a senior trade source quoted by Reuters: “Most of the weakness in cocoa is dollar-driven”. The source pointed out that the market was also focused on expectations of weak European and North American grind data, a measure of demand, which is due next week.
Arabica coffee futures for delivery in May had declined 0.83 percent to $1.346 as of 13:53 BST, while London May robusta coffee was down 0.28 percent at $1,785.00 a tonne.
In grains, wheat futures have edged lower, falling in three of the past four sessions as forecasts for more rains in the US grain belt weighed on prices. The front-month wheat contract had depreciated by about 0.58 percent to $5.22 per bushel on the Chicago Board of Trade (CBOT) as of 13:44 BST.
CBOT soybeans futures were down 0.54 percent to $9.661 per bushel, having managed to log in a gain during the previous session for the first time in a week. The front-month corn contract had declined 0.3 percent to $3.778 a bushel, extending yesterday’s nearly one percent drop, as traders squared positions ahead of a report from the US Department of Agriculture, due at 17:00 BST, which is expected to show that end-of-season corn supplies are at a nine-year high.