SOFTS-London cocoa sets 46-year high as supplies tighten

Credit: REUTERS/PETER NICHOLLS

Adds comments and closing prices

NEW YORK, Aug 29 (Reuters) - London cocoa futures on ICE rose to another 46-year high on Tuesday, buoyed by tightening supplies, while raw sugar prices touched a two-month peak before turning lower.

COCOA

* December London cocoa LCCc2 settled up 90 pounds, or 3.2%, at 2,886 pounds a metric ton after setting a 46-year high of 2,888 pounds.

* The market has regularly set new 46-year highs since late June, lifted by tightening supplies as crop problems in West Africa contribute to a large global deficit expected in the current 2022/23 season (October/September).

* The International Cocoa Organization (ICCO) is expected to issue a quarterly update this week and could increase the size of its global deficit projection from the 142,000 metric tons forecast in its last update.

* Rains were below average last week in most of Ivory Coast's main cocoa-growing regions, but soil moisture content was still high enough to help to strengthen the next October-to-March main crop, farmers said on Monday.

* December New York cocoa CCc2 rose $113, or 3.3%, to $3,588 a ton.

SUGAR

* October raw sugar SBc1​​settled down 0.12 cent, or 0.5%, at 25.45 cents per lb after setting a two-month high of 25.68 cents.

* Dealers said concerns about insufficient rains in major producers India and Thailand continue to underpin prices.

* Citi said in a note that it believes raw sugar prices will stay higher for longer and futures "could test $0.27-0.30/lb in 4Q 23".

* October white sugar LSUc1 rose $15.50, or 2.2%, at $724.90 a ton, partly adjusting to gains in raws on Monday when the London-based whites market was closed for a public holiday.

COFFEE

* November robusta coffee LRCc2settled up $12, or 0.5%, at $2,449 a ton.

* Coffee exports from Vietnam in the first eight months of 2023 are estimated to have dropped by 4.9% from a year earlier to 1.2 million tonnes, equivalent to 20 million 60 kg bags, the General Statistics Office said on Tuesday.

* December arabica coffee KCc2 rose 0.35 cents, or 0.2%, at $1.531 per lb.

(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Mark Potter, David Goodman and Shailesh Kuber)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))

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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