Markets

Raw sugar falls on speculative selling; coffee sets 2-1/2-month low

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SUGAR

* March raw sugar was down 0.27 cent, or 2.1 percent, at 12.47 cents per lb by 1428 GMT, after falling to 12.44 cents, its weakest since late November.

* Dealers said speculative selling dominated, as funds pushed the market through support levels, including the recent low of 12.49 cents.

* However, dealers noted traded volumes were thin as many participants remained on the sidelines.

* "We're seeing some volatile moves because volumes are so low," said one European dealer.

* Focus was also on Brazil's currency, which weakened on Thursday. A softer real encourages producer selling by improving local returns on dollar-traded commodities such as sugar and coffee.

* With the Brazilian harvest winding down, participants were awaiting more indications about production in Thailand and India.

* "The Thai harvest has only just started, so it's a little too early to draw conclusions," the dealer said. "And there are no real fresh developments in the Indian story."

* March white sugar slipped $4.20 or 1.2 percent to $339 a tonne.

COFFEE

* March arabica coffee fell 1.10 cents, or 1.1 percent, to $1.0195 per lb, after setting a new 2-1/2-month low of $1.0175.

* Arabica prices were also weighed down by the Brazilian real, coupled with worries about ample production this season.

* March robusta coffee fell $2, or 0.13 percent, to$1,520 a tonne, after dropping to its lowest since late September.

* Prices have been under pressure as top grower Vietnam harvests a massive crop.

* Farmers in Dak Lak province in Vietnam's Central Highlands, the country's largest coffee-growing area, have harvested nearly 80 percent of their 2018/19 crop, while it is around 50 percent in other provinces in the area.

COCOA

* March New York cocoa climbed $35, or 1.6 percent, to $2,197 a tonne, extending the prior day's gains as chart-driven speculative buying continued to dominate activity.

* March London cocoa rose 16 pounds or 1 percent to 1,630 pounds a tonne.

* The December London cocoa delivery will be delayed until Friday due to possible conversion of a Bulk Delivery Unit, the Intercontinental Exchange said in a notice

* There is a 90 percent chance of the El Niño weather pattern emerging during the northern hemisphere winter 2018-19, a US government weather forecaster said on Thursday.

Copyright Reuters, 2018