NEW YORK/LONDON: Raw sugar prices on ICE tumbled on Tuesday to their lowest levels in 11 months, while arabica coffee prices also slipped, both markets dragged by a slide in the currency of top-grower Brazil.
SUGAR
* October raw sugar settled down 0.19 cent, or 1.7%, at 11.24 cents per lb, after sliding to 11.16 cents per pound, the lowest since Oct. 1.
* This was the contract's sixth negative close in seven sessions.
* Prices were pressured as the Brazilian real slid to its lowest against the US dollar in nearly a year.
* Some traders cited comments from Brazil's central bank president that the currency's broader, recent weakness had been "well within" normal ranges.
* The currency rebounded later in the session after the central bank offered to sell dollars on the spot market.
* The market was also pressured by expectations that output from second-biggest producer India might not be as low as some had initially thought, thanks to increased rain there.
* The market is also awaiting news from India on the terms under which it will extend its sugar export subsidy.
* Marex Spectron said while it expects the new subsidies will leave Indian exports little changed between 3-5 million tonnes next season, this is nevertheless a bearish factor.
* October white sugar settled down $4.30, or 1.4%, at $306.10 per tonne, after setting a low for the monthly contract of $305.20 per tonne.
COFFEE
* December arabica settled down 0.35 cent, or 0.4%, at 97.15 cents per lb, also pressured by the real's slide.
* Losses were limited, however, by signals that supplies this year might not be as plentiful as had been earlier forecasted.
* Brazilian coffee cooperatives said in a statement on Monday that poor weather conditions would negatively affect the 2019 and the 2020 crop.
* November robusta coffee settled up $25, or 1.9%, at $1,339 per tonne.
COCOA
* December New York cocoa settled up $9, or 0.4%, at $2,247 per tonne.
* "We're seeing more trade and possibly more industry interest, and there's the impression of not much (selling from) origin, so that's allowed the market to lift," one dealer said.
* Weather prospects in West Africa continue to improve, however. Above-average rain last week was expected to boost the start of Ivory Coast's October-to-March main crop.
* December London cocoa settled down 1 pound, or 0.1%, at 1,716 pounds per tonne.
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