Commodities

SOFTS-Coffee prices weaken, focus remains on weather in Brazil

Credit: REUTERS/AMANDA PEROBELLI

Arabica coffee futures on ICE fell sharply on Wednesday as the threat posed to crops in Brazil from a forecast cold snap later this week appeared to recede slightly, while sugar prices were slightly higher.

LONDON, July 28 (Reuters) - Arabica coffee futures on ICE fell sharply on Wednesday as the threat posed to crops in Brazil from a forecast cold snap later this week appeared to recede slightly, while sugar prices were slightly higher.

COFFEE

* September arabica coffee KCc1 fell by 5.2 cents, or 2.6%, to $1.9655 per lb by 1051 GMT.

* The front month had risen to a peak of $2.1520 on Monday, the highest level in nearly seven years, as last week's strong frosts in top producer Brazil dented the outlook for next year's crop in the world's top producer.

*Dealers were also keeping a close watch on the weather outlook for later this week while noting some recent forecasts were not quite as cold as previous ones.

* Weather forecaster Maxar said in a note issued on Tuesday that temperatures in the south of Brazil would become cooler from Wednesday into the weekend, noting this would cause a "low to moderate frost threat".

* September robusta coffee LRCc1 fell by $8, or 0.4%, to $1,919 a tonne.

SUGAR

* October raw sugar SBc1 rose by 0.06 cent, or 0.3%, to 18.41 cents per lb.

* Dealers were also monitoring the weather outlook in Brazil with the cold snap later this week likely to hit sugar cane producing areas.

* Brazil produced 2.94 million tonnes of sugar in the first half of July, 2.8% less than a year ago, industry group Unica said on Tuesday, adding that there was no clarity yet regarding the impact from last week's frosts.

* October white sugar LSUc1 rose by $1.70, or 0.4%, to $456.40 a tonne.

COCOA

* December London cocoa LCCc2 ​​rose by 5 pounds, or 0.3%, to 1,691 pounds per tonne.

* December New York cocoa CCc2 ​fell by $5, or 0.2%, to $2,433 a tonne​.

(Reporting by Nigel Hunt; editing by David Evans)

((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net ))

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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