Raw sugar prices slip to four-month low, cocoa retreats

LONDON: Raw sugar prices on ICE fell to their lowest level in about four months, weakened by technically-driven selling, while London cocoa slid from an earlier nine-month peak.

SUGAR

* July raw sugar was down 0.21 cents, or 1.7 percent, at 12.13 cents per lb at 1417 GMT after dipping to a low of 12.12 cents, the weakest for the contract since Jan. 4.

* Dealers noted there appeared little appetite to receive sugar against the May contract which expired on Tuesday with the delivery seen the smallest since July 2014.

* A retreat in crude oil prices during the last few days has also added to downward pressure on sugar along with weakness in Brazil's real currency.

* "The sugar market has taken a bit of a battering in the past sessions as technical support levels have been breached in a background of weaker energy prices and a weaker Brazil real," Nick Penney, senior trader with Sucden Financial, said.

* A weaker Brazilian real improves dollar-denominated prices in local currency terms in the world's top exporter and can spark a pick-up in producer selling.

* ICE August white sugar fell $4.50, or 1.3 percent, to $330.40 a tonne.

COCOA

* July London cocoa was down 10 pounds, or 0.6 percent, at 1,789 pounds a tonne after earlier rising to a peak of 1,820 pounds, the highest for the benchmark second position since July 2018.

* Dealers said the reversal was led by the New York contract which has been relatively weak in the last couple of weeks.

* July New York cocoa fell $16, or 0.7 percent, to $2,343 a tonne.

* "New York July moved to a discount to London (July) for the first time in a long time," one dealer said.

* Dealers said technical influences dominated with many producers sidelined due to public holidays in many countries including top grower Ivory Coast.

* They noted good demand continued to underpin prices although supplies remained adequate.

* "The demand picture still looks pretty good but against that you've got a very good ongoing crop (in West Africa)," one dealer said.

COFFEE

* ICE July arabica coffee was down 1.85 cents, or 2.0 percent, at 91.30 cents per lb with the market back on the defensive after a short-covering rally.

* Dealers said the prospect of another large harvest in Brazil this year continued to keep the market on the defensive.

* July robusta coffee fell $28, or 2.0 percent, to $1,379 a tonne.