LONDON, Oct 25 (Reuters) – Arabica coffee futures on ICE hit two-week lows on Monday against the backdrop of a slump in the Brazilian real and bearish sentiment in wider financial markets. MKTS/GLOBFRX/O/R
Cocoa and sugar were little changed.
COFFEE
* December arabica coffee KCc1 fell 0.8% to $1.9825 per lb by 1133 GMT.
* Arabica speculators reduced their net long position by 2,277 lots to 45,340 in the week to Oct. 19, data showed.
* Dealers cited much-needed weekend rains in top producer Brazil, widespread coffee tree flowering and a steep slump in the Brazilian real versus the dollar.
* A weak real tempts Brazilian producers and exporters to sell dollar-priced coffee by raising returns in local currency terms.
* January robusta coffee LRCc2 fell 0.1% to $2,139 a tonne.
SUGAR
* March raw sugar SBc1 slipped 0.1% to 19.07 cents per lb, edging away from last week’s three-week low of 18.82 cents.
* Raw sugar speculators cut their net long position by 33,515 contracts to 126,148 in the week to Oct. 19, data showed.
* Dealers said the market looks set to try to consolidate at current lofty levels, with rains in Brazil weighing somewhat and the risk of more fund long liquidation looming.
* Egypt has strategic sugar reserves sufficient until January-February, a senior supply ministry official said.
* December white sugar LSUc1 fell 0.5% to $498.20 a tonne.
COCOA
* March London cocoa LCCc2 fell 0.1% to 1,775 pounds a tonne.
* Cocoa arrivals at ports in top grower Ivory Coast since the start of the season on Oct. 1 reached 277,000 tonnes by Oct. 24, exporters estimated, down 15.3% from the same period last season.
* Ivorian output has long been expected to fall this season, though recent dry and sunny weather has improved the production outlook.
* Meanwhile, recent data on third-quarter demand growth has been largely disappointing, traders and analysts said.
* December New York cocoa CCc1 gained 0.1% to $2,584 a tonne.
* New York cocoa speculators switched to a net short position of 10,672 contracts in the week to Oct 19, cutting 16,667 contracts.
(Reporting by Maytaal Angel Editing by David Goodman )
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