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Recasts; includes additional comments, closing prices
LONDON, Oct 14 (Reuters) – Arabica coffee futures on ICE lost nearly 10% this week to hit a one-year low on Friday as the prospects for next year’s crop in Brazil improved following favourable weather, driving fund selling.
COFFEE
* December arabica coffee KCc1 settled down 5.45 cents, or 2.7%, at $1.967 per lb after touching a one-year low of $1.9565.
* The contract lost 9.8% in the week.
* “The rains in Brazil, of course, and also their large arabica shipment,” said a U.S. trader, citing some factors behind the bearish movement this week. Brazil exported 18% more arabica coffee in September.
* A second broker said that “once margin call selling subsides, a bounce in coffee prices may be in order”, adding that differentials, which have been falling, reverted to the upside late in the week.
* Dealers noted ICE certified stocks were continuing to decline, but said that semi-washed coffee in Brazil was now almost cheap enough to be shipped to exchange warehouses.
* ICE-certified arabica stocks fell to 400,439 bags on Oct. 14, the lowest level in 23 years.
* January robusta coffee LRCc2 fell $46, or 2.2%, at $2,051 a tonne.
SUGAR
* March raw sugar SBc1 rose 0.03 cent, or 0.2%, at 18.84 cents per lb. The contract gained 0.8% in the week.
* Dealers said rains in Brazil, the top sugar producer, had slowed this year’s harvest and were threatening to curtail production.
* British commodities trader Czarnikow on Friday downgraded its forecast for sugar output in Brazil this year by 700,000 tonnes, citing an increased risk that not all the sugarcane will be crushed due to adverse weather conditions.
* December white sugar LSUc1 rose $2.10, or 0.4%, to $559.30 a tonne.
COCOA
* March London cocoa LCCc2 settled up 14 pounds, or 0.7%, to 1,929 pounds per tonne, having touched more than a two-year peak of 1,954 pounds on Monday.
* Dealers said the market was underpinned partly by a slow start to the main crop in top grower Ivory Coast.
* December New York cocoa CCc1 fell $8, or 0.3%, to $2,377 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Shailesh Kuber, Paul Simao and Shounak Dasgupta)
((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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