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Updates with market action, comments and closing prices
NEW YORK/LONDON, July 15 (Reuters) – Arabica coffee futures on ICE partially recovered on Friday from a nine-month low in the prior session, gaining 2.3%, but bearish pressure persisted with global growth worries and improved output prospects in top producer Brazil.
Meanwhile, New York cocoa rose more than 3% off a two-year low.
COFFEE
* September arabica coffee KCc2 settled up 4.5 cents, or 2.3%, at $1.998 per lb, having closed down 5.8% on Thursday after hitting a nine-month low at $1.9495.
* Dealers said the market became oversold after Thursday’s session, but cited fading fears that frosts could hit Brazil’s coffee areas and hurt next season’s crop, coupled with better-than-expected output this season and increased exports.
* In the wider markets, the U.S. dollar, seen by many as a safe haven, held near a two-decade high amid ongoing global growth and inflation concerns. A strong dollar makes dollar-priced commodities like coffee costlier for non-U.S. investors. FRX/
* September robusta coffee LRCc2 fell $7, or 0.4%, to $1,923 a tonne, having hit its lowest in nearly a year at $1,914.
COCOA
* September New York cocoa CCc2 rose $74, or 3.3%, to $2,321 a tonne, after hitting its lowest in two years on Thursday.
* Dealers said the strong dollar was hurting cocoa, and also cited concerns over worsening demand for the chocolate ingredient.
* They added funds have likely built up record net short positions this week. CFTC will be released later on Friday.
* September London cocoa LCCc2 rose 36 pounds, or 2.1%, to 1,720 pounds per tonne, having hit its lowest since early March on Thursday.
SUGAR
* October raw sugar SBc1 rose 0.28 cent, or 1.5%, to 19.25 cents per lb.
* Dealers said near-term tightness in white sugar, linked in part to India’s export constraints, is limiting losses in raws.
* New legislation approved by the Brazilian Congress reinstated a tax advantage to biofuels compared with fossil fuels — a move that should benefit ethanol and sugar longer term.
* August white sugar LSUc1expired rising $3.00, or 0.5%, to $598.60 a tonne.
* Traders said deliveries at the expiry reached 4,528 lots, or 226,400 tonnes.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Shinjini Ganguli and Jonathan Oatis)
((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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