SOFTS-Raw sugar hovers near four-month low, cocoa climbs

Updates prices, adds background

LONDON, July 6 (Reuters) – Raw sugar futures on ICE rose slightly on Wednesday, edging away from the previous session’s four-month low, though weaker crude oil prices and a stronger dollar kept a lid on the market.

SUGAR

* October raw sugar SBc1 rose 0.2% to 17.82 cents per lb by 1428 GMT, hovering just above the previous session’s four-month low of 17.71 cents.

* Dealers said weakness in crude oil prices continued to weigh on the sugar market because they raise the prospect of mills using more cane to make the sweetener rather than cane-derived biofuel ethanol.

* Concern that a global economic downturn could curb demand for sugar has also contributed to recent weakness while funds have now liquidated a net long position and appear unlikely to have much appetite to buy, at least in the short-term.

* August white sugar LSUc1 rose 2.35% to $560.90 a tonne.

COCOA

* September New York cocoa CCc2 rose 2.4% to $2,370 a tonne, rebounding from Tuesday’s one-year low of $2,275.

* Dealers said the market’s focus was beginning to turn to grind data for the second quarter, which should provide an indication on whether demand has begun to weaken against the backdrop of conflict in Ukraine and a global economic downturn.

* European grind data is due to on July 13 and the North American grind is scheduled for release on July 21.

* September London cocoa LCCc2 rose 2.1% to 1,762 pounds per tonne.

COFFEE

* September arabica coffee KCc2 fell 0.3% to $2.2045 per lb.

* Colombia produced 951,000 60kg bags of washed arabica coffee in June, the national coffee federation said on Tuesday, down 10% from the same month last year because of wet weather.

* September robusta coffee LRCc2 fell 0.25% to $1,956 a tonne.

(Reporting by Nigel Hunt Editing by David Goodman)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net ))

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