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Recasts, adds closing prices and comments
NEW YORK/LONDON, Aug 19 (Reuters) – Raw sugar futures on ICE hit a two-week low on Friday, appearing on track for a fifth successive daily decline, but the market rebounded on back of bad Brazil crop numbers and fund short covering. Coffee also closed up, while Cocoa fell.
SUGAR
* October raw sugar SBc1 settled up 0.32 cent, or 1.8%, at 18.09 cents per lb, after earlier having hit a two-week low of 17.61 cents/lb.
* Prices have lost ground this week, with a rally driven largely by fund short-covering running out of steam.
* Dealers said the market had begun to refocus on fundamentals. A global surplus is expected in both the 2021/22 and 2022/23 seasons. SUG/POLL
* A fresh projection from the Brazilian government, however, along with oversold technical signals, appeared to have turned the market around.
* Brazil’s Conab sharply cut its view for the sugarcane crop, projecting the smallest volume since 2011 amid unfavorable weather and a large reduction in planted area as farmers switch to more profitable crops.
* October white sugar LSUc1 rose $11.20, or 2.1%, at $550.10 a tonne.
COCOA
* December New York cocoa CCc2 settled down $48, or 2%, to $2,374 a tonne.
* Dealers said a gloomy economic outlook continued to weigh on cocoa prices despite a global deficit in the current 2021/22 season. COC/POLL
* “Currently, the overall increase in the demand for cocoa and the anticipated supply deficit for the 2021/22 season do not seem to be sufficient to counterbalance the effects of the current macroeconomic parameters,” the International Cocoa Organization said on Friday.
* December London cocoa LCCc2 fell 2 pounds, or 0.1%, to 1,825 pounds per tonne, with a decline in sterling to a three-week low against the dollar helping to underpin prices. GBP/
COFFEE
* December arabica coffee KCc2 rose 1.5 cent, or 0.7%, at $2.1335 per lb, although it lost 4.5% in the week.
* Prices climbed to a one-month high of $2.2340 late last week.
* Dealers said concerns about supply tightness were easing.
* ICE certified arabica stocks as of Aug. 19 stood at 610,680 bags, up from a 23-year low of 571,580 bags set on Monday.
* November robusta coffee LRCc2 rose $8, or 0.4%, at $2,226 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Jan Harvey 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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