Updates with closing prices and comments
LONDON, Aug 5 (Reuters) – Raw sugar futures on ICE rose on Friday as the market climbed further away from a one-year low set earlier this week, while arabica coffee prices fell sharply.
SUGAR
* October raw sugar SBc1settled up 0.39 cent, or 2.2%, at 17.94 cents per lb.
* Dealers said the recent bout of fund selling had largely abated, allowing sugar to begin to recover after its slide to a one-year low of 17.20 cents earlier this week.
* CFTC data showed funds had increased their short position in sugar in the week to Aug. 2.
* October white sugar LSUc1 rose $22.90, or 4.3%, at $550.90 a tonne.
* India will allow the export of an additional 1.2 million tonnes of sugar, a government official said on Friday.
* One U.S.-based trader said most of the new volume India approved for exports is raws, so the news was supporting white sugar futures.
COFFEE
* September arabica coffee KCc1settled down 9.85 cents, or 4.5%, at $2.0945 per lb, erasing much of the gains in the previous two sessions.
* Dealers said concern that a global economic downturn could curb consumption of coffee remained a bearish influence while a stronger dollar also weighed on prices. FRX/
* An increasing pace of harvest in Brazil was also seen as bearish.
* The market remained underpinned, however, by falling stocks.
* ICE certified arabica stocks fell again on Friday to 660,564 bags, the lowest since July 1999 and down sharply from 2.17 million bags a year ago.
* November robusta coffee LRCc2 rose $1 to $2,042 a tonne.
COCOA
* December London cocoa LCCc2fell 8 pounds, or 0.4%, to 1,772 pounds per tonne, consolidating just above a three-week low of 1,740 pounds set on Thursday.
* “Cocoa futures have found support around the longer term moving averages, and this could set the scene for higher prices towards 1,820 (pounds a tonne),” broker Sucden Financial said in a technical note.
* December New York cocoa CCc2 fell $47, or 2.0%, to $2,341 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Kirsten Donovan and Devika Syamnath)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
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