Raw sugar falls to 10-month low

Raw sugar futures on ICE dropped to a 10-month low on Thursday, extending losses below 17 cents per lb on chart-based selling after open interest jumped in the weak market, while traders eyed concern about high production in top producer Brazil.
May raw sugar settled down 0.31 cent, or 1.8 percent, at 16.81 cents per lb, after tumbling more than 3 percent to 16.58 cents, the spot contract's lowest since late May 2016.
The move took the May contract's discount to July as low as 0.2 cent, the widest since August 2015.
Dealers said a weak close in the previous session, combined with a rise in total open interest for the tenth straight session at low levels, spurred a bout of aggressive selling, which then triggered sell-stops and accelerated the move down.
Global 2017-18 sugar supply will move into a surplus of 2.85 million tonnes, raw value, Tropical Research Services (TRS) said on Thursday, citing a sharp rise in production in main producers including Brazil.
The market continues to monitor the damage done by Cyclone Debbie in Australia for signs of how much cane has been destroyed and how much might be salvaged before crushing begins.
May white sugar settled down $6.30, or 1.3 percent, at $479 per tonne, after slipping to $474.60, its weakest since May 2016.
Dealers also noted a rare arbitrage trade on Wednesday between the ICE May containerised and the May break bulk white sugar contracts.
May New York cocoa settled up $10, or 0.5 percent, at $2,096 per tonne, lifted by a firm British pound.
May London cocoa settled down 3 pounds, or 0.2 percent, at 1,683 pounds per tonne.
Top grower Ivory Coast slashed the guaranteed price for cocoa farmers for the April-to-September mid-crop, largely in line with market expectations, and eliminated its 5 percent cocoa registration tax for the mid-crop to stimulate purchases.
May arabica coffee closed flat at $1.393 per lb.
May robusta settled down $10, or 0.5 percent, at $2,161 per tonne.