Commodities

SOFTS-London cocoa dips to three-week low, sugar falls

Credit: REUTERS/PETER NICHOLLS

London cocoa futures on ICE fell to a three-week low on Tuesday, weighed down by generally favourable crop conditions in top producer Ivory Coast, while sugar prices also weakened.

Adds comment, updates prices

LONDON, Oct 19 (Reuters) - London cocoa futures on ICE fell to a three-week low on Tuesday, weighed down by generally favourable crop conditionsin top producer Ivory Coast, while sugar prices also weakened.

COCOA

* March London cocoa LCCc2 fell 1.3% to 1,796 pounds a tonne by 1334 GMT after dipping to a three-week low of 1,793 pounds.

* Dealers noted concerns that a rebound in demand in the 2021/22 season may not be enough to prevent another global surplus, with only a small fall in production expected from the record level in 2020/21.

* "We note that despite some weather-related concerns, the supply outlook remains broadly positive relative to pre-2021 levels, keeping a cap on prices," Fitch Solutions said in a note.

* Long sunny spells and a drop in rainfall last week created good conditions for the development of the October-to-March cocoa main crop in Ivory Coast, farmers said on Monday.

* December New York cocoa CCc1 fell 1.5% to $2,572 a tonne.

SUGAR

* March raw sugar SBc1 fell 1.6% to 19.05 cents per lb after slipping to 19.03 cents, its weakest level since late September.

* Dealers said that funds were continuing to liquidate long positions while buying has been largely limited to some scale-down interest from consumers.

* They noted recent rains in the Centre-South region of Brazil had provided some relief to cane crops, though soil moisture levels remain low.

* There are also concerns about the current La Nina weather pattern, which often brings dry weather to Brazil.

* December white sugar LSUc1 fell 1.1% to $501.80 a tonne.

COFFEE

* December arabica coffee KCc1 rose 0.5% to $2.0255 per lb.

* Dealers said a shortage of container freight capacity continued to disrupt the flow of coffee from Brazil and Vietnam, leading to increased demand for stocks in consuming countries.

* Recent rains in Brazil have, however, improved the outlook for the 2022/23 crop in the world's top producer.

* January robusta coffee LRCc2 was down 0.8% at $2,098 a tonne.

(Reporting by Nigel Hunt; editing by David Goodman and Jason Neely)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; 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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