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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)
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