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Adds background, updates prices
LONDON, Aug 26 (Reuters) – Arabica and robusta coffee futures on ICE eased on Friday, retreating from multi-month peaks set earlier in the week, although deteriorating crop prospects in Vietnam continued to underpin prices.
COFFEE
* December arabica coffee KCc2 fell 0.5% to $2.3820 per lb by 1300 GMT, having set a six-month peak of $2.4295 on Thursday.
* Dealers said the market had become technically overbought after its recent strong advance and could be set for a short-term setback.
* November robusta coffee LRCc2 fell 0.6% to $2,298 a tonne after setting a 7-1/2 month high of $2,355 on Wednesday.
* Robusta prices were boosted partly by dry weather in Vietnam, which has diminished the outlook for the upcoming crop in the world’s top robusta producer.
* “Stocks in Vietnam are dwindling rapidly … This, coupled with gloomy crop prospects, has caused the price of robusta coffee to soar by around 20% since mid-July,” Commerzbank said in a note.
SUGAR
* October raw sugar SBc1 rose 1.8% to 18.23 cents per lb.
* Dealers said the market was underpinned by a lack of exports from India and concerns that production in Centre-South Brazil this month had been lower than expected.
* The potential for a further fall in fuel prices in Brazil, however, remained a bearish influence. Lower fuel prices can lead to more use of cane to make sugar at the expense of cane-derived biofuel ethanol.
* October white sugar LSUc1 rose 1.6% to $556.70 a tonne.
COCOA
* December New York cocoa CCc2 fell 0.5% to $2,404 a tonne.
* December London cocoa LCCc2 was down 0.1% at 1,833 pounds a tonne with the weakness of sterling helping to limit losses. GBP/
(Reporting by Nigel Hunt Editing by David Goodman and David Evans)
((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
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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