ICE Sugar Futures Dip After Brazil Data Fades

Traders and analysts keeping an eye on global commodity markets were watching closely Tuesday as ICE sugar futures seesawed following fresh data from Brazil’s key sugar-producing region. Though the numbers offered a brief lift, the overall trend leaned downward, highlighting how closely futures prices track real-time harvest figures.

In short: ICE September arabica coffee futures gained 0.35 cents to $1.6830 per pound, while ICE July raw sugar futures closed down 0.01 cent at $0.1697 per pound after briefly rising on Brazil’s lower-than-expected mid-May crush data.

Brazil Sugar Data: What the Numbers Show

According to UNICA, Brazil’s center-south region produced 2.03 million tonnes of sugar in the second half of May. That’s up from 1.91 million tonnes in the first half—but still slightly below analyst expectations. Mills crushed 37.98 million tonnes of sugarcane during the second half of May, compared to 35.50 million tonnes in the first half.

Bruno Lima, sugar and ethanol manager at INTL FCStone, pointed out that cumulative sugar output so far this season is down nearly 9% compared to last year. “Some processing plants have had to reduce their crushing pace,” he said, “to avoid processing cane from regions where the growing cycle is less than 12 months.”

Coffee Futures: Small Moves Up and Down

On the coffee side, ICE September arabica futures inched higher. The contract gained 0.35 cents (0.2%) to settle at $1.6830 per pound. Meanwhile, LIFFE September Robusta futures dipped 5 dollars (0.3%) to $1,894 per tonne.

The relatively small movements in coffee futures reflect a market in a holding pattern, with no major supply disruptions or demand shocks reported during the period.

Cocoa: Firm Near Three-Year Highs

New York and London cocoa futures both rose, lingering near their highest levels in about three years. The gains come after commodity trader Olam International Ltd forecast that global cocoa will face a third consecutive season of supply deficits in 2014/15.

ICE September cocoa futures added 5 dollars (0.2%) to $3,085 per tonne, just below the three-year high of $3,103 reached on June 5. In London, LIFFE September cocoa futures rose 4 British pounds (0.2%) to $1,948 per tonne.

Frequently Asked Questions

Why did ICE July raw sugar futures fall after briefly rising?

ICE July raw sugar futures initially rose on news that Brazil’s center-south sugar production in late May was higher than the first half of the month. However, the data was still slightly below analyst expectations, and cumulative output is down nearly 9% year-on-year, leading traders to push prices back down by the close—to $0.1697 per pound.

What were the key numbers from Brazil’s UNICA report?

UNICA reported that Brazil’s center-south region produced 2.03 million tonnes of sugar in the second half of May, up from 1.91 million in the first half. Mills crushed 37.98 million tonnes of sugarcane in the same period, compared with 35.50 million tonnes earlier. Still, cumulative production is down nearly 9% versus last year.

How did arabica and Robusta coffee futures perform?

ICE September arabica futures rose 0.35 cents (0.2%) to $1.6830 per pound, while LIFFE September Robusta futures fell 5 dollars (0.3%) to $1,894 per tonne. The moves were modest, showing a stable market without major disruptions.

Why are cocoa futures near three-year highs?

Cocoa futures in New York and London climbed due to a forecast from Olam International Ltd that global cocoa supplies will face a third straight season of deficits in 2014/15, pushing prices to near three-year highs—though they eased slightly short of the June 5 peak.

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