SOFTS-NY cocoa dips to 8-month low, sugar also falls
Updates with closing prices, adds comments
NEW YORK/LONDON, July 7 (Reuters) - New York cocoa futures on ICE dipped to an eight-month low on Wednesday as the market struggled to absorb excess supplies following bumper harvests in top growers Ivory Coast and Ghana while raw sugar prices also weakened.
* September New York cocoa CCc2 settled down $2, or 0.1%, at $2,296 a tonne. The contract hit an eight-month low of $2,276 earlier in the session.
* Ghana's graded and sealed (G&S) cocoa arrivals rose to 981,222 tonnes as of June 17 from the start of this season's harvest on Oct. 1, compared with 754,800 tonnes the previous season.
* Ivory Coast port arrivals are also running above last season's pace.
* Weak demand linked to the COVID-19 pandemic has also contributed to expectations that there will be a large global surplus in 2020/21.
* Dealers said price charts were also looking bearish after the market's recent weak performance, particularly after the September contract closed below $2,300 on Tuesday.
* "The close below $2,300 could trigger losses back to $2,250," Sucden Financial said in a technical note.
* September London cocoa LCCc2 lost 10 pounds, or 0.6%, to 1,593 pounds per tonne.
* October raw sugar SBV1 settled down 0.12 cent, or 0.7%, at 17.75 cents per lb, extending its retreat from a four-month peak of 18.49 cents set last week.
* Dealers continued to assess the extent of damage to Brazilian cane from recent frosts, although early indications suggest losses may not be severe.
* High freight prices, they say, continue to hurt physical demand, as consumers who still have reasonable stocks wait to clinch new deals in the hope shipping costs recede.
* August white sugar LSUc1 fell $5.30, or 1.2%, at $438.70 a tonne.
* September arabica coffee KCc2 settled up 1.85 cents, or 1.2%, at $1.4995 per lb, the first price rise in the last five sessions.
* Dealers said disruptions to exports out of both Brazil and Vietnam due to a shortage of available capacity on container ships continued to support prices.
* Softs analyst Judith Ganes, who is touring Brazil this week, thinks the current crop will be smaller than most estimates suggest, saying the drought had a large impact in the size of beans being harvested.
* September robusta coffee LRCc2 rose $23, or 1.4%, at $1,702 a tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; additional reporting by Roberto Samora in Sao Paulo; Editing by Elaine Hardcastle and Lisa Shumaker)
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