Sugar and cocoa prices fall as dollar strengthens

Sugar and cocoa futures have extended losses, weighed by a strengthening dollar inspired by the better-than-expected US third quarter data.

Traders also talked of Indian buying of Brazilian raw sugar cargoes at a discount.

 Raw sugar futures have doubled this year, due to the combined impact of India’s shift to become a net importer of sugar after a poor local crop, and concerns over the impact of excessive rains on cane yields in top producer Brazil.

Cocoa dealers took stock of the latest bean arrivals data from top supplier Ivory Coast, noting that they were sharply up on last year. Cocoa arrivals at ports in Ivory Coast hit 121,155 tonnes between the start of the season on 1 and 25 October, reflecting new shipments and a revision of the previous tally, according to official figures. Cocoa dealers talked of concerns over the weak demand outlook, although the latest upbeat US wealth data was a welcome signal for consumption.