Recasts, includes closing prices and comments
NEW YORK/LONDON, Sept 10 (Reuters) – Raw sugar futures on ICE hit their lowest price in a month on Friday, as funds liquidated long positions amid signs of weakening demand.
Speculative selling also hit cocoa.
SUGAR
* October raw sugar SBc1 settled down 0.45 cent, or 2.3%, at 18.79 cents per lb, having hit its lowest price since early August at 18.73 cents.
* Dealers said sugar seems to have lost the bullish edge it had in July and August, with demand falling as freight rates soar, and with poor output in top producer Brazil already priced in.
* Those factors have prompted funds to book profits, reducing their net long position.
* “Funds have been selling the market since early this morning. Doesn’t appear to be stopping, and the release of Unica at least for now has curbed their selling or offset it,” said a broker.
* Unica showed Brazil’s centre-south sugar production rising 0.7% late in August, but said the crop will end ahead of time, as soon as October.
* The USDA increased its estimates for U.S. sugar demand and imports.
* October white sugar LSUc1 fell 1.7% to $466.90 a tonne.
COFFEE
* December arabica coffee KCc2 closed up 0.6 cent, or 0.3%, at $1.8805 per lb, having hit its lowest since late August at $1.8375 on Thursday.
* Top arabica producer Brazil, which was hit by drought and frosts earlier this season, has seen some rains in recent days.
* Light showers are forecast for this weekend in arabica growing states Parana, Sao Paulo and Minas, dealers said. Rains are crucial in the coming weeks as flowering approaches.
* “In normal weather times, I would not be too concerned about rains until end of September or beginning of October, but all things considered it is something to pay attention as we come from low volumes of rain since mid March, plus the frosts,” said a Brazil-based broker.
* November robusta coffee LRCc2 lost $2, or 0.1%, at $2,048 a tonne.
COCOA
* December New York cocoa CCc2 settled down $70, or 2.6%, at $2,603 a tonne.
* December London cocoa LCCc2 lost 22 pounds, or 1.2%, at 1,780 pounds per tonne
* Dealers said speculators were liquidating their long position in the chocolate-making raw material, both in London and New York.
(Reporting by Marcelo Teixeira and Maytaal Angel Editing by Jonathan Oatis, Mark Potter and Amy Caren Daniel)
(([email protected]; +1 332 220 8062; Reuters Messaging: [email protected] – https://twitter.com/tx_marcelo))
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