Commodities

SOFTS-NY cocoa dips to 8-month low, sugar also falls

Credit: REUTERS/LUC GNAGO

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.

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.

COCOA

* 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.

SUGAR

* 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.

COFFEE

* 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)

((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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