NEW YORK — Raw sugar futures on ICE fell on Tuesday as positive production news from Brazil pulled prices off a near six-year peak hit on Friday, while arabica coffee also fell.
The London market for robusta coffee, white sugar and cocoa was closed on Tuesday due to Boxing Day.
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* March raw sugar was down by 0.52 cent, or 2.48%, at 20.46 by 1610 GMT. The contract hit the highest level for the front month since February 2017 on Friday at 21.18 cents.
* Dealers cited a technical correction in the sugar market after a large increase in speculators’ long position recently.
* Brazil’s government raised its estimates for the country’s sugar and ethanol production in the 2022/23 season on Tuesday.
* In other news, Brazil is likely to extend a federal taxes exemption for fuels over January as the new administration takes over and evaluates long-term outlook for fuel prices.
* March arabica coffee was falling 2.85% to $1.6705 per lb after rising to a one-week peak of $1.7265 on Friday.
* Dealers said some investors unwinded on Tuesday protective positions built prior to the long holiday.
* Arabica coffee has been trading in a relatively short range between $1.55 and $1.70 since late November.
* There is reduced activity in the physical markets, particularly in top grower Brazil, said broker Carvalhaes in a report, while farmers are away from dealings due to holidays.
* Uganda’s coffee exports declined 15% in November from the same period a year ago, as drought reduced yields in some regions
* March New York cocoa was little changed at $2,626 per tonne. On Friday, the contract hit the highest price since early April at $2,651/tonne.
* Cocoa arrivals at ports in top grower Ivory Coast had reached 1.172 million tonnes by Dec. 25 since the start of the season on Oct. 1, up 14.1% from the same period last season.
* Ivory Coast’s cocoa grind was up 6.9% year on year in November to 113,803 tonnes. (Reporting by Marcelo Teixeira; Editing by David Gregorio)