NEW YORK/LONDON (Reuters) – ICE arabica coffee futures closed lower on Friday, accumulating losses of 2.7% for the week, pressured in part by rising inventories on the exchange, while raw sugar prices also They fell.
COFFEE
* March arabica coffee closed down 0.55 cents, or 0.3%, at $1.5815 a pound. The contract lost 2.7% for the week, the second consecutive week of declines.
* Dealers say the market has returned to the defensive after a short-lived recovery linked in part to deteriorating prospects for next year’s crop in Brazil.
* “Following a temporary recovery due to a worsening supply outlook at key producers Brazil and Colombia, arabica coffee prices have started to decline, triggered by a strong recovery in ICE arabica coffee stocks,” Fitch Solutions said in a note. .
* ICE-certified coffee stocks rose to 681,698 bags on 9 December, well above the 23-year low of 382,695 bags recorded on 3 November. There were 384,310 bags pending sorting.
* January Robusta coffee fell $34, or 1.8%, to $1,884 a tonne.
* The global coffee supply balance will move from a deficit of 2.17 million bags in 2022/23 to a surplus of 3.74 million bags in 2023/24, as Brazilian production partially recovers, according to with a report.
SUGAR
* March raw sugar dropped 0.08 cents, or 0.4%, to 19.60 cents a pound. The contract, however, gained 0.6% this week, its second consecutive week of gains.
* The market has been supported by rains in Brazil, which are likely to result in millions of tonnes of cane being left in the fields to be harvested next year.
* The group that represents the Brazilian mills Unica will release on Monday the production report for the center-south region referring to the second half of November.
* March white sugar rose $0.80, or 0.1%, to $541.40 a tonne.
(By Marcelo Teixeira and Nigel Hunt)
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