Sugar slips, heads back towards bottom of range

LONDON: Sugar dipped on Friday as signs of ample supply and weakening oil prices pushed the market back towards the bottom of its range, while Robusta coffee hit a new three year low.

SUGAR

* July raw sugar was down 0.03 cents, or 0.3 percent, at 12.20 cents per lb by 1114 GMT. The contract had dipped to a low of 12.10 cents on Wednesday, its weakest since Jan. 4.

* Oil prices fell amid surging US output, weighing on ethanol prices and tempting Brazilian cane mills to produce more sugar than the cane-based biofuel.

* "The market is close to getting a little over-sold which may stop a test of Wednesday's lows. However, with precious little bullish news there would seem little reason for prices to improve," said a dealer.

* "The market remains weak and at the bottom end of the 12-13 cents range," the dealer added.

* India's sugar production could rise 1.5 percent in 2018/19 to a record 33 million tonnes, a producers' body said.

* Brazil exported 1.08 million tonnes of raw sugar in April versus 0.77 million tonnes a year ago, data showed.

* ICE August white sugar fell $0.2, or 0.06 percent, at $329.40 a tonne.

COFFEE

* ICE July arabica coffee was up 0.3 cents, or 0.3 percent, at 91.85 cents per lb.

* Although coffee has steadied after hitting 13-year lows in mid-April, prices remain under pressure from oversupply, especially in Brazil.

* Brazil exported 2.68 million 60-kilogramme bags of coffee in April versus 1.95 million bags a year ago, data showed.

* Brazil will reassess the methodology used to set the government's minimum guarantee prices for coffee.

* Costa Rican coffee exports dropped by 22 percent in April, compared to the same month last year, data showed.

* July robusta coffee was flat at $1,364 a tonne, having hit a three year low of $1,352.

* A dealer said Robusta was playing catch up with the steeper falls seen this year in Arabica.

COCOA

* July London cocoa was down 3 pounds, or 0.1 percent, at 1,796 pounds a tonne.

* The cocoa market is reasonably balanced, with first-quarter grind data indicating demand is robust, while large harvests in West Africa should ensure sufficient supply.

* July New York cocoa fell $7, or 0.3 percent, to $2,368 a tonne.

* New York July cocoa test a support at $2,351 per tonne, a break below which could cause a loss to $2,317.