SOFTS-Raw sugar recovers from one-year low amid dry weather in Brazil


LONDON, July 28 (Reuters)Raw sugar futures on ICE recovered on Thursday from a one-year low hit in the prior session, with focus turning to dry weather in top producer Brazil.

SUGAR

* October raw sugar SBc1 rose 1% to 17.57 cents per lb at 1138 GMT, after hitting a one-year low of 17.32 cents on Wednesday weighed partly by strong production data in Brazil.

* Dealers said sugar had likely seen the lows for now, given ethanol prices are recovering in Brazil, as is the Brazilian real BRL=, while the country is experiencing a prolonged dry spell in key producing regions.

* India is set to allow mills to export another 1 million tonnes or so of sugar this season, mostly unrefined.

* October white sugar LSUc1 rose 0.7% to $513.70 a tonne.

COFFEE

* September arabica coffee KCc1 fell 0.8% to $2.1750 per lb, having hit a 2-1/2 week high of $2.2140.

* Dealers said with frost risk in top producer Brazil mostly gone for now, concern is turning to the dry weather, which could harm the 2023/24 crop.

* Nestle NESN.S warned that price hikes could eventually weigh on sales volumes for the maker of Cheerios cereals, Kit Kat bars and Nescafe.

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* Cost inflation hurt the world’s biggest food group less than expected in the second quarter but analysts said high prices were bound to impact volume going forward.

* September robusta coffee LRCc2 fell 0.1% to $2,007 a tonne.

* Local coffee prices in top robusta producer Vietnam rose this week due to scarce supplies towards the end of the country’s crop season.

COCOA

* September New York cocoa CCc1 rose 0.7% to $2,409 a tonne, after climbing to a one-month peak on Wednesday.

* Dealers said cocoa has been technically oversold of late and that bets for a bumper 2022/23 main crop from top producer Ivory Coast were a bit exaggerated.

* Ivory Coast expects production for the 2022/23 main crop will come in at 1.5 million tonnes versus 1.6 millions in the prior season.

* September London cocoa LCCc1 rose 0.1% to 1,744 pounds per tonne​.

(Reporting by Maytaal Angel; Editing by David Holmes)

((maytaal.angel@thomsonreuters.com(00442075429105) ))

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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