Raw sugar futures fall, arabica coffee also weakens
- September London cocoa slipped 0.1% to 1,609 pounds per tonne.
- July raw sugar rose 1.9% to 17.70 cents per lb, having settled down 1.9% on Monday.
- July arabica coffee rose 0.3% to $1.6055 per lb, having settled down 1.5% on Monday, extending its retreat from last week's 4-1/2-year high of $1.6675.
LONDON: Cocoa prices on ICE hit their lowest level in a month on Tuesday amid ample supplies, while raw sugar and arabica coffee recovered from the prior session's retreat.
COCOA
September London cocoa slipped 0.1% to 1,609 pounds per tonne by 1512 GMT, having hit its lowest since early May at 1,606.
Dealers noted problems in Ivory Coast's power supply continue to impact the country's cocoa grind. They also noted a widening discount for September versus December cocoa, which indicates ample supply.
Ivory Coast's cocoa grinders processed 367,000 tonnes of beans by end-May, down 24.5% year-on-year. The country is the world's top cocoa producer and vies with the Netherlands for the spot of leading grinder.
September New York cocoa slipped 0.1% to $2,402 a tonne, having hit its lowest since early May at $2,395.
SUGAR
July raw sugar rose 1.9% to 17.70 cents per lb, having settled down 1.9% on Monday.
Dealers said while rains are forecast in drought-hit Brazil over the next few days, the sugar market remains nervous and essentially range-bound as the impact of the rains is assessed.
August white sugar rose 1.5% to $466.30 a tonne.
COFFEE
July arabica coffee rose 0.3% to $1.6055 per lb, having settled down 1.5% on Monday, extending its retreat from last week's 4-1/2-year high of $1.6675.
Dealers said over the past month, arabica futures needed to rise 7% to make up for the weakening dollar versus the Brazilian real. In reality, they rose 17%, suggesting the rally was overdone and prices have peaked for now.
The market continues to watch rain levels in top producer Brazil, which are finally set to improve after prolonged dryness that damaged the current crop and might have hit next year's.
The Inter-American Commission on Human Rights met with Colombian officials on Monday ahead of a three-day visit to gather information about possible rights abuses during nearly six weeks of anti-government protests that have disrupted exports like coffee.
July robusta coffee rose 0.6% to $1,635 a tonne.
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