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Updates with comments, market activity and closing prices
NEW YORK/LONDON, July 8 (Reuters) – Raw sugar futures on ICE gained nearly 3% on Friday, extending their rise from the previous day, with prices underpinned by strong physical demand that has helped tighten global supplies. Arabica coffee rose, while cocoa fell.
SUGAR
* October raw sugar SBc1 rose 0.5 cent, or 2.7%, at 19.02 cents per lb as the market extended its rebound from the four-month low of 17.71 cents on Tuesday.
* “Although we expect spot prices to remain vulnerable to spec length liquidations triggered by negative economic news flow, we believe it is premature for commodities to succumb to recession concerns when the global economy is still growing and markets remain in deficit on strong demand,” said Goldman Sachs.
* Brazil’s line-up of sugar vessels remains strong with traders citing Chinese buying.
* India extended a deadline for the export of 800,000 tonnes of sugar by two weeks as annual monsoon rains make it tough for many producers to move stocks from factories to ports.
* August white sugar LSUc1 rose $13.90, or 2.5%, at $568.90 a tonne.
COCOA
* September New York cocoa CCc2 fell $36, or 1.5%, to $2,318 a tonne, slipping back towards Tuesday’s one-year low of $2,275.
* The potential for a global economic downturn and conflict in Ukraine to curb demand for chocolate remained a major concern.
* Peak Trading Research said in a note, however, that cocoa is an investment opportunity.
* “Cocoa has exceptionally bullish seasonals over the coming weeks. It is also the cheapest agriculture market on the planet (current price versus 24-month average),” it said.
* September London cocoa LCCc2 fell 33 pounds, or 1.9%, to 1,716 pounds per tonne.
COFFEE
* September arabica coffee KCc2 rose 1.55 cents, or 0.7%, at $2.2045 per lb, after hitting a 1-1/2 month low of $2.151, also weighed by concerns that demand could weaken.
* “The price of soft commodities such as coffee are expected to come under increasing downward pressure… as a slowing down in global growth hampers demand,” Fitch Solutions said in a note.
* September robusta coffee LRCc2 rose $37, or 1.9%, at $1,981 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by David Goodman, Krishna Chandra Eluri and Shailesh Kuber)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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