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Foreign early comment: raw sugar futures fell to a five-and-a-half-month low Arabica coffee futures from rising to falling

Published: 2025-08-21 Author: World Gafei
Last Updated: 2025/08/21, ICE raw sugar futures fell to a five-and-a-half month low Tuesday after a sell-off that continued today following a sharp rally sparked by a warehouse fire in Brazil. Arabica coffee futures rose amid volatile trading amid uncertainty about the extent of crop damage from Brazil's drought.

ICE raw sugar futures fell to a five-and-a-half-month low on Tuesday. The market suffered a sell-off after a fire in a Brazilian warehouse triggered a sharp rise in the market last day. Arabica coffee futures rose as markets fluctuated amid uncertainty about the extent of crop damage caused by the drought in Brazil.

New York and London can hold steady, with the market consolidating after hitting three-year highs last day.

ICE raw sugar futures closed lower on Monday and continued their decline on Tuesday. Raw sugar surged 5.6 per cent in the first three minutes after the market opened on Monday, but the rally quickly lost momentum and traders turned their focus to weak demand in the physical market. The jump in raw sugar on Monday was a knee-jerk reaction to the fire at the Rumo warehouse run by Brazil's Cosan SA in the port of Santos.

"the fund responded first, and traders and producers took advantage of the rising market to sell," said Michael McDougall, senior director of Newedge.

ICE- October raw sugar futures fell 19 cents, or 1.2%, to close at 16.13 cents a pound, near an intraday low of 16.10 cents, the lowest in recent months since Feb. 19.

London International Financial Futures and options Exchange (LIFFE)-October sugar contract closed down $3, or 0.7%, at $431.70 a tonne.

ICE- September Arabica coffee futures closed down 1.10 cents, or 0.6%, at $1.8940 a pound, trading volatile. Open contracts rose by about 2000 to 166091 on Aug. 4, according to exchange data, and traders said the rise in open contracts showed that investors had taken new short positions rather than long positions when the market fell last day.

LIFFE- November Robusta coffee futures closed down $1, or 0.05%, at $2007 a tonne.

ICE- September cocoa futures were flat at $3195, still close to hitting a three-year high of $3239 on Monday. London December cocoa futures were also flat at £1987 a tonne. The volume of the two markets is also delivered.

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