Arabica coffee prices on ICE fell for the seventh consecutive session on Thursday 20 October to hit the lowest in nearly 13 months, with dealers focused on favourable weather in Brazil, Central America, Mexico and Colombia, amid a weakening global economy.
Coffee
* December arabica coffee KCc1 settled down 1.25 cents, or 0.7%, at $1.9105 per lb, having touched its lowest since Sept. 23, 2021 at $1.8820.
* Dealers noted rains in top producer Brazil had spurred coffee tree flowering, and are set to continue over the next week, while Colombia, Central America and Mexico are, for the most part, experiencing good weather for harvesting.
* "We are neutral to neutral-bearish on arabica in the 6-12 month horizon as supply improves due to optimal weather in Brazil and increased bean exports, while increasing recession odds could lead to demand destruction," Citi said in a note.
* "It's havoc. Domestic market business in Brazil is tight as a straitjacket. Matches well with the latest madness," a coffee trader said, adding that farmers left the market amid tumbling prices.
* January robusta coffee LRCc2 rose $41, or 2.1%, to $2,041 a tonne.
Sugar
* March raw sugar SBc1 settled down 0.26 cent, or 1.4%, at 18.39 cents per lb.
* Dealers said the downside is more likely to be tested again as the amount of refined sugar soon to be available will likely adequately satisfy demand as India starts its 2022/23 harvest, which is expected to be good.
* France's Tereos, the world's second largest sugar producer by volume, raised the price at which it will buy sugar beets from its cooperative members by 40% versus last year amid soaring European sugar markets.
* December white sugar LSUc1 fell $10.90, or 2%, to $527.90 a tonne, a two-week low.
Cocoa
* December New York cocoa CCc1 settled up $20, or 0.9%, to $2,328 a tonne.
* The market rose prior to the release, expected later on Thursday 20 October, of the North America third-quarter grinding report, a measure of demand, with market estimates ranging from unchanged to 5% lower.
* March London cocoa LCCc2 rose £12, or 0.6%, to £1,901 per tonne, helped by continued weakness in sterling.
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