Recasts, contains closing costs and feedback
NEW YORK/LONDON, Might 7 (Reuters) – Arabica espresso futures on ICE closed down on Friday because the market consolidated after hitting a four-year peak within the prior session, whereas uncooked sugar additionally fell.
COFFEE
* July arabica espresso KCc2 settled down 1.Four cent, or 0.9%, at $1.5290 per lb. The contract hit $1.5540 on Thursday, its highest degree since January 2017.
* Arabica has been supported by dry climate in high producer Brazil that’s anticipated to scale back this 12 months’s harvest.
* Additionally giving the market a lift, the Brazilian actual BRL= has been strengthening, hitting its highest degree in greater than three months on Thursday.
* A powerful actual deters farmers and exporters from promoting dollar-priced arabica by reducing returns in native foreign money phrases.
* Funding financial institution Itau BBA stated the outlook for espresso stays supportive as Brazil enters winter, with an opportunity for frosts.
* The financial institution additionally stated the potential for rain within the coming days, after a protracted dry interval, might be extra unfavourable than optimistic because of the likelihood that beans might drop from bushes.
* July robusta espresso LRCc2settled down $8, or 0.5%, at $1,539 a tonne.
SUGAR
* July uncooked sugar SBN1settled down 0.06 cent, or 0.3%, at 17.49 cents per lb, having hit a 1-1/2-week excessive of 17.89 cents on Thursday.
* Sellers stated sugar would possibly see some promoting within the near-time period given the widening low cost for the July contract versus October, a bearish sign indicating elevated close by provide.
* They added, nonetheless, that July ought to discover help beneath 17.20 cents per lb, with a deteriorating provide outlook in high producer Brazil which means the market is finally nonetheless poised for features.
* August white sugar LSUc1settled up $1.80, or 0.4%, at $464.70 a tonne.
COCOA
* July New York cocoa CCc2settled up $50, or 2.1%, at $2,463 a tonne, its third consecutive session of features, recovering from a 5-1/2-month low of $2,347 recorded on Tuesday.
* July London cocoa LCCc2settled up 33 kilos, or 2.0%, at 1,645 kilos per tonne.
* Cocoa has been pressured by surplus provide within the present season, however enjoyable protocols to take care of the coronavirus pandemic in massive markets reminiscent of the US and Europe are seen as optimistic for its restoration.
(Reporting by Marcelo Teixeira and Maytaal Angel; Modifying by Louise Heavens, Mark Potter and Paul Simao)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
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