March 9, 2020 / 1:41 PM / 3 months ago

SOFTS-Raw sugar hits 4-month trough as oil price war rages; cocoa, coffee sink

LONDON, March 9 (Reuters) - Raw sugar futures on ICE sank to four-month lows on Monday as crude oil prices tumbled as much as 33% after Saudi Arabia launched a price war with Russia following the collapse of their three-year supply pact.

Cocoa prices hit two-month lows and arabica coffee plumbed a one-month trough.


* May raw sugar dropped 0.69 cents, or 5.3%, to 12.32 cents per lb at 1301 GMT after hitting a more than four-month trough of 12.18 cents.

* Oil prices suffered their biggest daily rout since the 1991 Gulf War as Saudi Arabia and Russia signalled they would hike output in a market already awash with crude.

* Weaker energy prices can tempt cane mills in Brazil to produce more sugar instead of biofuel ethanol. Cane is a feedstock for both products.

* “The main driver is speculative long liquidation,” said Sucden Financial in a note.

* It added, however: “Should the spat between Russia and Saudi Arabia subside, and/or coronavirus cases begin to diminish, sugar traders are going to be asking themselves whether a 300 point drop is justified. The (futures) structure still points to tightness.”

* Sugar speculators on ICE cut their net long positions in the week ended March 3 by 43,544 contracts to 74,267, CFTC data showed.

* May white sugar fell $20.90, or 5.6%, to $349.40 a tonne, having hit a three-month low at $349.10.


* May New York cocoa was down $48, or 1.9%, at $2,513 a tonne after hitting its lowest since early January at $2,512.

* Cocoa speculators on ICE cut their net long positions in the week ended March 3 by 8,282 contracts to 33,277, CFTC data showed.

* The International Cocoa Organization (ICCO) on Friday forecast a global cocoa deficit of 85,000 tonnes in the 2019/20 season.

* A Reuters poll in late January gave a median forecast for a deficit of 70,000 tonnes.

* Cocoa arrivals at ports in top grower Ivory Coast reached 1.567 million tonnes between Oct. 1 and March 8, exporters estimated, up 0.1% from the same period last season.

* May London cocoa fell 44 pounds, or 2.3%, to 1,842 pounds a tonne after setting a two month low of 1,839 pounds.


* May arabica coffee fell 0.15 cents, or 0.1%, to $1.0725 per lb, having touched its lowest in a month at $1.0255.

* Arabica speculators on ICE cut their net short positions in the week ended March 3 by 13,000 contracts to 3,229, CFTC data showed.

* Coffee remains underpinned by tightening physical supplies, as indicated by falling exchange stocks..

* May robusta coffee was down $27, or 2.2%, at $1,218 a tonne. (Reporting by Maytaal Angel; Editing by Emelia Sithole-Matarise)

Nuestros Estándares:Los principios Thomson Reuters
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