ICE raw sugar futures fell to a six-month low on Wednesday as investors stayed focused on strong Brazilian yields, while Liffe cocoa rose to a three-year high on support from the sharply lower British pound. Coffee futures on ICE Futures US firmed, attracting chart-based buying after tapping a support level, bucking the weak trend in larger commodity markets as the Thomson Reuters/CoreCommodity CRB Index fell to a six-month low.
Raw sugar futures on ICE extended losses from the prior session as traders focused on strong Brazilian output over the first four months of the 2014/15 season. A senior London-based broker said high Brazilian yields had triggered the selling pressure. Benchmark ICE October raw sugar futures settled down 0.03 cent, or 0.2 percent, at 16.02 cents a lb, near the six-month low at 15.97 cents touched earlier in the session.
"The contract low of 15.72 cents per lb posted back in January is the support level after 15.92 and a breakdown through this may increase short selling by the speculative community," said Nick Penney, senior trader with Sucden Financial Sugar. October whites on Liffe changed direction in late trade, closing up 20 cents, or 0.05 percent, at $432.60.
Liffe December cocoa futures closed up 11 pounds, or 0.5 percent, at 2,024 pounds per tonne, after reaching 2,026 pounds, the highest since July 2011. The market was buoyed by the weak sterling and supportive options-related dealings, traders said. One US dealer noted heavy put buying of Liffe cocoa December and March 2015 options provided some support, while heavy call selling at $3,200 in ICE cocoa December options provided spillover pressure in the US futures market.
Benchmark ICE December cocoa futures eased $7, or 0.2 percent, to settle at $3,231 per tonne, just below Tuesday's session high at $3,244, the highest since late July 2011. In coffee, ICE December arabicas closed up 0.70 cent, or 0.4 percent, at $1.8960 per lb. November robusta futures on Liffe ended flat at $1,976 a tonne.
