© Reuters. Coffee harvest in Brazil. REUTERS/Roosevelt Cassio
NEW YORK/LONDON (Reuters) – ICE futures and futures closed lower on Friday on growing concerns about a global economic slowdown, against a backdrop of rising interest rates.
* October raw sugar fell 0.21 cents, or 1.1%, to 18.28 cents a lb.
* Dealers said the market has some support from the short-term supply squeeze in raw and white sugar, although a global surplus is still expected in the 2022/23 season.
* A shift to using more cane to produce sugar rather than in the main producer Brazil should also ensure that there is ample supply in the medium term.
*”As the outlook for the global economy continues to weaken and expectations of tighter monetary policy continue to rise, the outlook for sugar prices remains bleak, with more sugar diverted to sweeteners rather than ethanol production “, said Fitch Solutions in a note.
* December white sugar was down $4.20, or 0.8%, to $532.70 a tonne.
* December Arabica coffee declined 3.1 cents, or 1.4%, to trade at $2.2045 a lb.
* Operators said rains in Brazil and the prospect of more rains in the coming weeks have improved prospects for next year’s crop at the world’s top producer.
* “Moisture supplies will be fully replenished in much of Brazil, which will help with flowering,” the Maxar weather service said in a report.
* The Brazilian government has admitted that its estimates for the coffee harvest in recent years are problematic and need improvement.
* November coffee fell $6, or 0.3%, to $2,232 a ton.
(Reporting by Marcelo Teixeira and Nigel Hunt)