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Adds background, updates prices
LONDON, Sept 7 (Reuters) – Arabica coffee futures on ICE were lower on Wednesday, weighed by a strengthening dollar and recent showers in some parts of Brazil, while raw sugar prices rose.
COFFEE
* December arabica coffee KCc2 fell 1.65% to $2.2640 per lb by 1412 GMT.
* A strong dollar has effectively raised prices in local currency terms in Brazil and can lead to a pick-up in sales from the world’s top exporter.
* Dealers also noted that there had been some showers in southern coffee areas in Brazil and more rain was forecast, although there remained concern about dry conditions in northern areas.
* The prospect that a La Nina weather event could last until the end of the year has heightened concern as it is associated with dry weather in Brazil.
* November robusta coffee LRCc2 fell 1.1% to $2,237 a tonne.
SUGAR
* October raw sugar SBc1 rose 1.2% to 18.20 cents per lb.
* Dealers said the market was supported by rising energy prices which can increase the incentive to use cane to produce biofuel ethanol rather than sugar, particularly in Brazil.
* October white sugar LSUc1, which expires on Sept. 15, fell 0.9% to $567.90 a tonne.
* Ukrainian farmers sowed 180,000 hectares for 2022 sugar beet harvest despite the Russian invasion, which will allow it to produce 1.1 million tonnes of white sugar, covering all domestic needs, deputy agriculture minister Taras Vysotskyi said on Wednesday.
COCOA
* December New York cocoa CCc2 was down 1.3% at $2,339 per tonne, weighed by the strong dollar.
* Broker Sucden Financial said in a report that the market’s weak performance on Tuesday had created a more bearish outlook on price charts.
* “Indicators point to a growing downside momentum in the near-term,” Sucden said.
* December London cocoa LCCc2 was down 0.2% at 1,862 pounds a tonne.
(Reporting by Nigel Hunt; Editing by Chizu Nomiyama and Mark Porter)
((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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