Recasts, includes comments and closing prices
NEW YORK/LONDON, Oct 18 (Reuters) – Raw sugar futures in New York fell more than 2% on Monday as interest from speculators faded amid widespread rains in Brazil.
London cocoa futures on ICE Futures Europe dipped to a three-week low, with weak processing margins helping to curb demand for beans.
SUGAR
* March raw sugar SBc1 settled down 0.45 cent, or 2.3%, at 19.35 cents per lb.
* Dealers said that funds appeared to be continuing to scale back long positions after recent rains in the Centre-South region of Brazil improved the outlook for next year’s cane crop.
* “Recent rainfall in CS Brazil may have diminished bullish enthusiasm in the short term,” analysts Green Pool said in a weekly update.
* Speculators cut their net long position in raw sugar on ICE U.S. in the week to Oct. 12.
* “Order flow remains weak, with limited buying interest from both specs and consumers,” said Czarnikow sugar analyst Jack Haslam in a note.
* Brazilian mills sold forward a record amount of sugar so far, said Archer Consulting, as the local currency remains weak and New York prices are reasonably high.
* China imported 870,000 tonnes of sugar in September, up 61.1% from the same month last year.
* December white sugar LSUc1 fell $12.70, or 2.4%, at $507.30 a tonne.
COCOA
* March London cocoa LCCc2 settled up 3 pounds, or 0.2%, to 1,819 pounds per tonne, after dipping to a three-week low of 1,799 pounds.
* Dealers said that third-quarter grind data showed demand had rebounded after slumping during the COVID-19 pandemic, though year-on-year gains were lower in North America (+4.3%) and Asia (+4.1%) than Europe (+8.7%).
* “Market participants appear to expect demand in Europe to grow less dynamically now, too; the pre-pandemic level having already been exceeded. Lower grinding is already anticipated in the fourth quarter in view of the fall in margins,” Commerzbank said in a note.
* December New York cocoa CCc1 gained $3, or 0.1%, to $2,610 a tonne.
COFFEE
* December arabica coffee KCc1 settled down 1.8 cents, or 0.9%, at $2.016 per lb.
* Dealers said that the widespread rains in top grower Brazil will likely take some steam out of the market for now, after prices climbed last week to near the highest in seven years.
* January robusta coffee LRCc2 lost $6, or 0.3%, at $2,115 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt Editing by David Goodman, David Evans, William Maclean)
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