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Recasts, includes comments on sugar and closing prices
NEW YORK/LONDON, Aug 10 (Reuters) – Arabica coffee futures rose more than 3% and raw sugar futures on ICE climbed to the highest level in over two weeks on Wednesday, boosted by concerns about crop outlooks in the European Union and China.
A weaker dollar also helped support prices denominated in the U.S. currency. FRX/
SUGAR
* October raw sugar SBc1 settled 0.3 cent, or 1.7%, higher at 18.28 cents per lb after peaking at 18.40 cents – the highest level for the front month since July 22.
* Dealers said supportive factors include concern that hot, dry weather could curb production in the European Union and forecasts warning of flooding in China.
* “Weather forecasters are expecting another round of flooding in China’s sugarcane regions that is likely to damage crops (and, possibly, infrastructure). So China’s sugar production is now on the watchlist,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
* Gains were capped, however, by Brazil’s centre-south production report showing sugar production and cane crush above market expectations.
* “Unica numbers sere significant, but a stronger Brazilian real kept mills away from sales,” said StoneX analyst Filipi Cardoso.BRL=
* October white sugar LSUc1 rose $7.10, or 1.3%, at $549.70 a tonne.
COFFEE
* September arabica coffee KCc1 settled 7.7 cents, or 3.6%, higher at $2.2045 per lb as the market continued to derive support from short-term supply tightness.
* Dealers said that Brazilian export numbers for July were low and provided some support.
* “Exports tend to increase in August. If no increase is seen next month, it will likely confirm a lower crop,” said analyst Ryan Delany with Coffee Trading Academy.
* ICE certified arabica stocks fell below 600,000 bags for first time since June 1999, at 591,959 bags.
* November robusta coffee LRCc2 rose $49, or 2.3%, at $2,149 a tonne.
COCOA
* December New York cocoa CCc2 rose $34, or 1.4%, to $2,438 a tonne.
* Traders cited smaller-than-expected inflation number in the U.S. as positive for agricultural commodities in general, as it signals less interest rate increases.
* December London cocoa LCCc2 rose 3 pounds, or 0.2%, higher to 1,806 pounds per tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Emelia Sithole-Matarise and Krishna Chandra Eluri)
((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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