Raw sugar futures saw a slight decline on Thursday following a robust performance in the previous session, while coffee and cocoa prices remained relatively unchanged. October raw sugar decreased by 0.08 cents, or 0.6%, to 14.25 cents per pound. Market resistance above 14.30 cents and the impending expiry of October raw sugar options were cited as contributing factors. Conversely, October white sugar increased by $2.20, or 0.6%, to $371.20 per tonne, although the profitability of refining has lessened recently due to an anticipated large EU harvest. Analyst Tobin Gorey from Commonwealth Bank of Australia warned that limited processing of raw sugar could result in an oversupply of refined sugar.
In the coffee market, December arabica coffee rose slightly by 0.05 cents, or 0.04%, to $1.3790 per pound, consolidating after recent gains driven by technical buying and concerns over dry weather in Brazil. However, November robusta coffee fell by $4, or 0.2%, to $1,999 per tonne.
Cocoa prices showed mixed movements, with December London cocoa dropping by 4 pounds, or 0.3%, to 1,505 pounds per tonne, influenced by a stronger British pound. Meanwhile, December New York cocoa increased by $4 to $1,994 per tonne. Both markets had previously advanced due to a more positive technical outlook, leading to short-covering. Speculative buying has also narrowed the price gap between the London and New York cocoa markets.
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