Raw sugar settles higher on 2019 crop hopes

• The market was supported by the prospect of a global deficit in the 2019/20 season, with a prolonged period of low prices curbing production.
• North American third-quarter cocoa grindings fell 7.4% year on year, data from the National Confectioners Association (NCA) showed.

NEW YORK/LONDON: Raw sugar futures on ICE rose on Friday, edging higher after touching the lowest level in more than three weeks early in the session.

At the same time, cocoa fell after the North American grind missed expectations, and coffee extended a rebound.

SUGAR

* March raw sugar settled up 0.08 cent, or 0.7%, at 12.32 cents per lb, after touching a low of 12.20 cents, the weakest price for the contract since Sept. 24.

* The contract was 0.7% lower on the week.

* The market was supported by the prospect of a global deficit in the 2019/20 season, with a prolonged period of low prices curbing production.

* "We remain positive on prices as 2019/20 global production prospects have deteriorated in recent months and the market is tightening," Fitch Solutions said in a market note.

* Dealers said producer selling had helped to put the market on the defensive this week, driven partly by overall weakness in Brazil's real currency.

* December white sugar settled down $3.10, or 0.9%, at $335.90 per tonne.

COCOA

* December New York cocoa settled down $2, or 0.1%, at $2,486 per tonne.

* The contract was down 0.8% on the week.

* Dealers said that North American third-quarter grind data was weaker than expected, though the impact was muted by the record pace of grindings in Asia.

* North American third-quarter cocoa grindings fell 7.4% year on year, data from the National Confectioners Association (NCA) showed on Thursday.

* Asia's third-quarter cocoa grind rose 14.7% from the same period last year to a record 225,356 tonnes, data from the Cocoa Association of Asia (CAA) showed on Friday.

* March London cocoa settled down 9 pounds, or 0.5%, at 1,857 pounds per tonne.

COFFEE

* December arabica coffee settled up 2.8 cent, or 3%, at 95.70 cents per lb, pulling away from last week's contract low of 92.20 cents.

* The contract was up 2.1% on the week.

* Dealers said there may be scope for the market to regain more ground in the short-term but the upside remained capped by abundant supplies and the prospect of a record crop in Brazil next year.

* January robusta coffee settled up $24, or 2%, at $1,251 per tonne, extending its rebound from a contract low of $1,211 set on Wednesday.