SOFTS-Sugar, coffee and cocoa fall amid negative economic outlook

NOTew throughout, updates prices, market activity and commentary

NEW YORK/LONDON, April 25 (Reuters)Ssugar, coffee and cocoa closed sharply on ICE on Monday in a day of overall weakness for the commodity complex amid concerns over demand due to China’s tough lockdowns and a risk move in funds ahead of the US interest rate hike.

SUGAR

* Can raw sugar SBc1 fell 0.29 cents, or 1.5%, to 18.95 cents a pound after hitting its lowest level since late March at 18.87 cents.

* “The macro environment is downgraded to negative, a bearish headwind for agricultural cash flows. Investors are worried about the hawkish Fed, higher interest rates, COVID bottlenecks in China and weak corporate earnings,” Peak Research said.

* Dealers also said that a weaker Brazilian real BRL= and lower crude prices mean that the sugar/ethanol split in major producer Brazil is unlikely to change much from last season, helping to ensure adequate sugar supplies.OR

* Limit sugar losses, manufacturer of Coca-Cola soft drinks KO.Na major consumer of sugar, beat quarterly revenue forecasts thanks to higher prices and a rebound in demand.

* August white sugar LSUc1 fell $9.40, or 1.8%, to $521.10 per tonne.

COCOA

* July Cocoa New York CCc2 fell $67, or 2.6%, to $2,487 a tonne, after hitting its lowest level in nearly two months at $2,482.

* Cocoa is under pressure from data showing that first-quarter grindings, a measure of demand, fell in North America and Asia.

* Meteorologist Climate42 said the tree canopy of Ivory Coast’s top cocoa producer is not uniform, with some areas being better than others.

* “Overall, with total potential 15% below average, the mid-crop will surely be weak, while the main crop looks promising if no dry anomalies occur in the next 6-8 weeks,” said he declared.

* Cocoa July London LCCc2 fell 20 pounds, or 1.1%, at 1,750 pounds per ton​.

COFFEE

* July arabica coffee KNc2settled 6.45 cents, or 2.8%, to $2.207 a pound.

* July robusta coffee LRCc2 fell $50, or 2.4%, to $2,066 a tonne, touching the lowest price since March 8 at $2,056.

* “With global inflation rising, China growing less, the Ukraine war two months past, the size of demand for the coming months is again a big question,” said a broker.

(Reporting by Marcelo Teixeira and Maytaal Angel Editing by David Goodman and Marguerita Choy)

(([email protected]; +1 332 220 8062; Reuters messaging: [email protected]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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