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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.
* 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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