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SOFTS-Raw sugar drops from nearly 6-year high, arabica coffee also down

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Updates with market activity, commentary and closing prices

NEW YORK, December 27 (Reuters)Raw sugar futures on ICE closed more than 3% lower on Tuesday amid a technical correction and bearish news from Brazil, while Arabica coffee also fell.

SUGAR

* March raw sugar SBc1 The contract settled down 0.66 cents, or 3.1%, at 20.32 cents per pound. The contract on Friday hit its highest level for the first month since February 2017 at 21.18 cents.

* Traders cited news from Brazil’s top producer and a technical correction in the sugar market, after a sharp increase in the long position of speculators recently.

* The Brazilian government raised his estimates Tuesday for the country’s sugar and ethanol production for the 2022/23 season.

* In other news, Brazil is likely to extend a federal tax exemption for fuels in January as the new administration takes over and assesses the long-term outlook for fuel prices.

* The extension means gasoline will remain more competitive than ethanol, leading factories to focus on sugar production next season.

COFFEE

* Arabica coffee from March KCH3 settled 5.05 cents, or 2.9%, at $1.6695 a pound. The contract had hit a one-week high at $1.7265 on Friday.

* Dealers said some investors unwound protective positions built ahead of the long holiday on Tuesday.

* Arabica coffee has been trading in a relatively short range between $1.55 and $1.70 since late November.

* Uganda coffee exports fell 15% in November compared to the same period a year ago, as drought reduced yields in some areas

COCOA

* New York Cocoa March CCc1 ​settled down $5, or 0.2%, to $2,633 a tonne, hitting its highest price in nearly nine months.

* Cocoa arrivals in the ports of the first producer in Côte d’Ivoire had reached 1.172 million tonnes by December 25 since the start of the season on October 1, up 14.1% from the same period last season.

* The cocoa grind from Ivory Coast rose 6.9% year on year in November, to 113,803 tonnes.

(Reporting by Marcelo Teixeira; Editing by David Gregorio and Shailesh Kuber)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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