Soft commodities watch: Sugar price retreats from three-week high

By: Anthony Broadfoot
Anthony Broadfoot
Anthony worked for a number of years as head of sales and marketing for stock broker companies with extensive… read more.
on Apr 9, 2015

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.

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