Coffee falls further from 4-week top, sugar ticks down

Dec 2, 202218:51 UTC

Arabica coffee futures on ICE fell on Friday to move further back from a four-week peak, while raw sugar inched down as the markets assessed mixed crop prospects in Brazil and amid a mostly negative macroeconomic outlook.

COFFEE

* March arabica coffee KC2! fell 2% to $1.6260 per lb. The contract ended down 2.4% on Thursday in a pullback from a four-week high earlier in the session.

* A rebound in the dollar, as U.S. employment data raised doubts over a possible slowing in interest rate hikes, put some pressure on prices.

* Dealers said the market lacked clear direction in light volumes, with participants waiting for a clearer picture on Brazil's next crop.

* A production in the range between 50-56 million bags was seen by independent analyst SpillingTheBeans, while others expect a much higher volume.

* January robusta coffee RC1! fell 0.1% at $1,888 a tonne.

* Coffee prices in Vietnam remained flat from a week ago.

SUGAR

* March raw sugar SB1! fell 0.6% to 19.48 cents per lb, but continued to hold above a 2-1/2 week low struck at the start of the week.

* Sugar prices have been capped by expectations of a shift to a market surplus amid favourable production prospects in Brazil.

* Brazil exported 4.07 million tonnes of sugar in November, 53% more than a year ago and the highest monthly volume of the year.

* However, prices remained underpinned by a prolonged period of rain in Brazil's south and southeastern regions that is expected to hurt cane harvest progress.

* March white sugar SF1! fell 0.9% to $532.90 a tonne.

COCOA

* March New York cocoa CC2! rose 0.7% to $2,536 a tonne.