LONDON: White sugar futures fell to their lowest level in nearly a year and a half on Thursday, weighed on by bearish chart signals and a large upcoming crop from the European Union, while London cocoa prices climbed on a weaker pound and arabica coffee eased.
SUGAR
October white sugar was down $1.60, or 0.42 percent, at $376.30 a tonne by 1119 GMT.
Pressured by bearish chart-signals, prices earlier hit $376.20, the lowest for the front month since February 2016.
Dealers said market focus was on the European Union, as member states start to get feedback from yield tests for the bloc's first post-quota crop.
They also said low open interest in the December and March positions has fuelled worries that EU farmers still have to hedge the bulk of their crop, which is expected to be as much as 20 percent larger this year.
"We think the market is yet to see the weight of the European farmer selling," said one dealer. "They haven't really got going yet."
October raw sugar was down 0.08 cent or 0.59 percent to 13.56 cents per lb, the weakest for the front-month since July 13.
Dealers pegged the dip on partly technical weakness, after a lower close in the previous session.
The bearish mood was also reinforced by expectations of strong production in Centre-South Brazil, with focus on upcoming cane crush data from industry group UNICA.
"A dry weather spell in Brazil's South Central region has been helping its sugar cane harvest," ING said in a market note.
COCOA
September London cocoa rose 9 pounds or 0.58 percent to 1,566 pounds a tonne, boosted by a weaker British pound.
The currency dipped to a three-week low against the dollar as a mixed bag of data did little to alter investors' downbeat view of the economy.
September New York cocoa gained $7 or 0.35 percent, to $2,009 a tonne.
Cocoa prices slid in the previous session, although dealers noted low volumes signalled lack of conviction in the market.
Dealers said trade remained range-bound on Thursday, with technical indicators still dominating market activity.
COFFEE
September arabica coffee fell 0.70 cents, or 0.49 percent, to $1.4195 per lb, hovering just below a 4-1/2 month high touched earlier this week.
Prices eased in the previous session, with indicators showing the market moved into overbought territory.
September robusta coffee fell $3, or 0.14 percent, to $2,133 per tonne.
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